Till the soil when it is fairly dry. Turn on the tiller and push it back and forth across the yard, digging to a depth of 6 to 8 inches.
Spread compost, topsoil and other organic material over the clay to improve its composition and drainage ability. Organic material includes leaves, mulch and pine needles. Cover the soil with 3 to 4 inches of this material.
Till the new material to mix it with the clay and create a richer growing medium.
Rake out the soil smooth.
Fill a seed spreader with half the recommended seed for the lawn and push the spreader in rows over the area. After covering once, fill the spreader with the remaining seed and push the spreader in rows perpendicular to the first.
Gently rake the soil to mix the seed into the top half-inch of soil.
Shake hay between your hands over the entire yard. Do not make a thick covering--only a light coat.
Water the lawn to a depth of 2 or 3 inches, using sprinklers or a garden hose. Repeat every day until you see sprouts. Reduce watering to twice a week after sprouts appear.