I'm afraid retaining wall construction is outside of our area of expertise. There is a lot of info on the web (try a google search for: "retaining wall" construction. I can tell you that there needs to be some way for water to leak through the wall (weep holes) and it usually helps to have a vertical layer of gravel behind the wall. The weep holes prevent a buildup of water that would tend to push the wall outward.
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