In a region of limited rainfall such as Colorado, add moisture regularly to maintain composting. If parts of the composting material dry out, many microorganisms in the dry areas die. The microbes that remain require time to multiply and resume plant digestion even when moisture is added. The net result is slower composting. However, excess moisture displaces air and slows breakdown.
Surplus water creates low oxygen conditions where certain microbes multiply and produce foul odors.
The best description of the proper moisture level is moist or damp but not soggy. The entire mass of plant wastes should be moistened uniformly to the point where only a few drops of water can be squeezed from a fistful of plant material. The size of plant particles that go into the compost also affects aeration. Large particles allow a lot of air to circulate around the plant chunks, but breakdown is slow because microbes can act only on the outside, not on the inside of the large chunks. Particles chopped into smaller chunks increase the surface area for microbes to operate but particles chopped too small will compact and restrict air flow.