I have always heard to put sand in to level the yard. Once the yard is leveled a french drain is needed so the water drains away from the house.
French drains are common drainage systems, primarily used to prevent ground and surface water from penetrating or damaging building foundations. This could be as easy as a simple ditch depending on how much water is draining towards the house. Alternatively, the French drain technique may be used to distribute water, such as that which flows from the outlet of a typical septic tank sewage treatment system. French drains are also used behind retaining walls to relieve ground water pressure.... more