That's exactly what I did with mine. My yard slopes down, away from my house, and I have clay soil. So the spot I wanted to put the coop was at the bottom of the yard, and a muddy mess. I created a short retaining wall with cinderblocks, and filled the space with mulch, leaves, lawn clippings, used pine shavings from the coop, etc. Drains great. Deep litter.You could always just make sure you raise the coop and run with some pavers or cinder blocks, then fill it with mulch or other materials.