Dealing with powdered clay soil

[dkizerian]

Just moved in to a new house, and the whole yard is clay. Most of it has alfalfa growing and is serviceable, but there is one area that looks like it was dug, or back-filled while dry, and it's pretty much a fine powder, 8-18 inches deep. If you walk in it you sink... I'm hoping to level this area, put a shed on it, and plant grass in the rest.... How do I get this soil to change back from a super-fine powder to something usable that a shed could be leveled on, and that grass could grow on and be solid?

 

[igpoobah]

I'd start with watering it. It'll turn back to muck in short order