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The ground should be level and not prone to collecting excessive water (it needs good drainage). Your compost pile needs to stay moist but you do not want too much water or it will not work properly. In addition to level ground, make sure you can easily access the area with a wheelbarrow to transport your finished compost.
A shady location is best, as if the compost pile gets too much sunlight it will get too hot and dry out. Again, the pile needs to stay moist and overheating it with external sources will not help.
A water source should be close by – you can reach the area with your garden hose or easily carry enough water to moisten the pile if it becomes too dry. Remember you just want to moisten the pile with a spray of water not drench it.
If you are beginning with a one bin system, you may want to leave enough room for a second bin down the road. By having two bins side-by-side, you can easily rotate or turn the pile by moving material from one bin to the next.
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