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I think the well would work fine. I grew up in a 175 yr old house, it had a dirt basement for many years and did not fill with water.
yes, i think moisture would wick up a bit, but not kill tree roots if the concret wall was deep enough.
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I'm not arguing here, rather I think that it makes for good discussion.
I think that it could be fine, depending on the soil profile. If you have good porosity from the surface down to a point below the wall, it would be different that if you hit a clay or other impermeable layer...I think, but I'm no hydrologist/ agronomist.
We have a lot of clay down a bit, and our winter water table is about 1.5' feet down, from what we saw when digging post holes.
I imagine that a factor that would play into it would be how the soil is excavated and refilled. If an impermeable layer is disturbed, it might change things a little or a lot.
I think having some educated ideas about the local soil layering would be an important thing to know before implementing such a plan. It gets pretty complex to do it right.