Soil Water Retention
What type of soil holds the most water?
The answer to your question depends on whether you mean volume
of water or ability to retain water. Sand can accept the most
volume of water because of the large spaces between the sand
particles. However, peat is the soil that is best at holding
and retaining water, because of it's large organic content.
Meteorologist at Argonne Nat. Lab.
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Update: June 2012