Pulverize the area to be compacted with a tilling disc. Mix water with the loose clay.
Drive the tractor over the area repeatedly until the surface is hard. To prevent erosion on a steep slope, or to build a pond, add a second, 6-inch layer of loose clay or sodium bentonite and water, and compact the area with the tractor.
Fence livestock such as pigs, sheep or cows in the area to be compacted. The animals' hooves will compact their feces with the loose clay after several weeks and seal the surface. This ancient natural method is known as "glueing."
Rake the loose clay to the desired grade and shape to compact a small area. Mix water with the loose clay, and use the hand tamp to compress the mix and create a hard seal. Compact the area with a lawn roller while the clay mix is still damp for a firmer or level surface.