Most older homes have a sump pump that looks like this. It is basically a terracotta pot that was installed when they first poured the concrete floor. The pit is very small, and doesn't allow for significant drainage. Another problem is that it is open on the top. This makes for a very unsafe environment. Someone could trip in the hole, or a small child or pet might get stuck in there. It also lets a lot of water vapor back into the air, and that leads to nasty smells in the basement.
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