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While it may not be illegal to drain and bury the pool, it is not a good idea. First, the fact that there is a buried pool in the backyard is something you will need to disclose, which may scare off buyers. You have to assume that they will know there was once a pool, as even minimal research will determine that. Second, if you bury a pool, rain water will have no way to escape the pool and you will end up with a mud pit in the backyard. There is a decommission process you must follow, which will include removing the concrete or liner (depending on what type you have).
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