Identify a spot on your property that is no closer than 10 feet to your home's foundation where rain runoff naturally flows. Avoid areas where rain water accumulates for more than 24 hours. Avoid areas that are up an incline from the house.
Lay a garden hose on the ground and experiment with the contours of the rain garden. Create a long and narrow shape where the widest part of the opening lies perpendicular to the slope of the ground.
Extend downspouts from the house's rain gutters so that the runoff reaches the area. Direct the water to flow into the rain garden at its widest point.
Clear away the grass and topsoil. Shovel out the subsoil from the rain garden area down to a depth of 4 inches at its deepest point. Adjust the depth of your hole to hold the amount of water you desire. Drive stakes into the earth at opposite ends of the rain garden. Tie one end of a string on one stake and the other end to the other stake. Hold a level against the string and check that the top of the rain garden is level. Use additional stakes and tie a string that runs perpendicular to the first string. Remove or add soil until the rain garden is level in both directions.
Stack the soil you removed from the hole to create a berm. Pack the dirt that forms the berm down compactly to stop water flowing into the rain garden from flowing out just as fast. Cover the berm with mulch to prevent erosion.
Add plants and flowers to the rain garden that grow natively in your area. Take into account the height of the plants, when each will bloom, how long each blooms, sun, soil and fertilizer requirements.
Inspect your rain garden after the first few significant rainfalls to ensure that it is performing to your expectations.