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Joined: Mar 2006
The recommended testing method is to dig a 12" hole, fill it with water & see how long it takes for the water to drain out completely. If the water is still there the next day, you have slow drainage and 2 options: 1) grow plants that like wet conditions there, or 2) amend the soil with sand and/or lots of compost to improve drainage. I suppose there's also 3) build a raised bed with lots of good topsoil (probably not stuff just dug from another part of the yard) and, yes, more compost.
If the area is flat you may be able to use the more imprecise, but lazier method of eyeballing the area after a heavy rainstorm: no puddles=very fast drainage (amend with peat & compost, or use arid-loving plants); puddles that are readily absorbed=good drainage; puddles that stick around forever=very slow drainage. Of course, this only tells you what drainage is like at the soil surface, not so much what it's like down deep in the plant's root zone... Good luck!
The great thing about gardening is that you always get a chance to start over!