Etymology

dry well

Today it means: An underground structure (for example, a pit filled with gravel) that disposes of unwanted water (most commonly surface runoff and stormwater and in some cases greywater) by holding it and dissipating it into the groundwater. Full definition →

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The story

From dry + well (in both open compound and solid compound form).

Etymology from Wiktionary, CC BY-SA 4.0.