When soil is sandy and dry or wet and sticky, the problems are opposite, but the solution may be the same. Adding organic matter to soils is helpful to relieve many kinds of soil and water problems. Below are several articles that are helpful in learning how to improve soils with organic matter:
Compost Increases the Water Holding Capacity of Droughty Soils by M. Charles Gould, Michigan State University Extension
Compost Benefits and Uses, University of Illinois Extension
Using Organic Matter in the Garden, Cornell University
Improving Soggy Soils, William Moss, Moss in the City
Improve Poor Drainage, Better Homes and Gardens