Urban development often results in compacted soils, impairing soil structure and reducing the infiltration and retention of stormwater runoff from impervious features. Biochar is a promising organic soil amendment to improve infiltration and retention of stormwater runoff. Soil at the disconnection between impervious and pervious surfaces represents a critical biochar application point for stormwater management from urban impervious features. This study tested the hypothesis that biochar would significantly improve water retention and transmission at four sites, where varying percentages (0%, 2%, and 4% w/w) of biochar were amended to soils between impervious pavement, and pervious grassed slopes. Field-saturated hydraulic conductivity (Ksat) and easily drainable water storage capacity were monitored at these sites for five months (two sites) and 15 months (two sites). At the end of the monitoring periods, the physical, chemical, and biological properties of each site's soil were assessed to understand the impact of biochar on soil aggregation, which is critical for improved soil structure and water infiltration. Results indicated that the field Ksat, drainable water storage capacity, and plant available water content (AWC) were 7.1 ± 3.6 SE, 2.0 ± 0.3 SE, and 2.1 ± 0.3 SE times higher in soils amended with 4% biochar, respectively, compared to the undisturbed soil. Factor analysis elucidated that biochar amendment increased the organic matter content, aggregate mean weight diameter, organo-mineral content, and fungal hyphal length while decreasing the bulk density. Across the 12 biochar/soil combinations, the multiple linear regression models derived from factor analysis described the changes in Ksat and AWC reasonably well with R2 values of 0.51 and 0.71, respectively. Using soil and biochar properties measured before biochar addition, two recent models, developed from laboratory investigations, were found helpful as screening tools to predict biochar's effect on Ksat and AWC at the four field sites. Overall, the findings illustrate that biochar amendment to compacted urban soils can significantly improve soil structure and hydraulic function at impervious/pervious surface disconnections, and screening models help to predict biochar's effectiveness in this context.