My garden resembles a mud bath and when walked on squelches and a lot
of water rises above the shoe. We live about half a mile from a river
so I think this may have something to do with it.

I believe there are drainage pipes under the soil but it seems to make
no significant difference.Someone also suggested adding peat to the
soil. Is there anything else I can do to reduce the water or
absorb/drain it as I want to erect a shed as soon as possible?

Dear collywobbles-ga 

There are several reasons for poor garden drainage, these include type
of soil and the natural level of the water table which after heavy
rain may be level with the ground or above. Clay soils are very bad at
drainage but will often crack in the summer months. New houses often
have gardens which have been compacted by builders’ vehicles and
debris. Builders have been known to fill in existing ditches., while
old farmland may have a ‘plough table’ or ‘iron pan’ formed after
years of ploughing. This makes soil very impervious to water.

If you have a very high water table there is very little you can do
and you may have to resign yourself to creating a bog garden or have
ponds. To test the level, dig a hole about 24 inch deep by 12 inch
square, then fill it half full with water. Within 24 hours it should
empty on well-drained soil. On very wet land, the hole may actually
fill.

Your existing drainage may be inefficient as it is blocked or the
pipes have cracked. It may be worthwhile investigating its condition
and make repairs, and even extend it. Consider a ditch at the lowest
point of your garden (depending on the size of your garden).

To improve the compacted layer you can dig holes with a spade or
crowbar as deep as you can and fill with stone chippings. Or create a
larger soak hole filled with gravel (a least a cubic yard) with short
drainage pipe runs into the hole.

Try improving the top soil if it is not a problem of compacted soil
below. You could remove the top 6 inch and import new topsoil. Or
double dig and add bulky organic material to improve the soils
drainage. Finally, you could raise your garden beds with good quality
loam soil to ensure that at least your plants will not suffer from the
poor drainage. Or resign yourself to nature and grow bog friendly
plants.

The long term solution however, is probably to improve the drainage
system.

Look at these sites for additional information:
http://www.diydata.com/problem/drainage/drainage.htm
http://www.gardenadvice.co.uk/howto/lawns/drainage/
http://www.garden.ie/Pages/gardening-know-how/story.html?section=Drainage&parent=Garden%20Skills

Please ask for clarification of this research, or if the links do not
work, before rating the answer.

Hope this helps to solve your problem.

answerfinder-ga

Search strategy
drainage OR draining +garden
://www.google.com/search?q=drainage+OR+draining+%2Bgarden&hl=en&lr=&ie=UTF-8&oe=UTF-8

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Clarification of Answer by answerfinder-ga on 30 Dec 2002 08:07 PST

Thanks for the suggestion probonopublico-ga. If try this
collywobbles-ga don't put the tree too close to the house as it may be
too effective and disturb the foundations.
answerfinder-ga

I experienced this years ago and I planted a Willow (they love water)
... It seemed to solve the problem.

There are probably other flora with similar properties.

Answerfinder did good, except does "double dig" mean to dig twice as
deep as usual for the plants? I suspect you have at least a temporary
water table at or above the surface of your garden. This is the
definition of a swamp, bog or Marsh. Draining one of these is
typically a big engineering project which extends across the property
of neighbors unless you own property all the way to the river or a
large drainage ditch that leads to the river. You will have trouble
with your new shed unless you drive pilings deep enough to find hard
soil or rock to serve as a foundation for your shed. Is your house
tilting or cracking? Digging up the drainage pipes will be expensive
and they may clog again in months. Perhaps the papers that came with
your property will contain clues. Are you in a 50 year or 500 year
flood area? The local water management district person may have some
sugestions. A willow tree on each side of your shed might be the
solution.  Neil