For some weird reason, I was able to keep my back yard in pretty good condition last year even with the dog doing it's business everywhere. So I don't have much to say. But a friend at work, who loves his lawn, and has two dogs couldn't keep it under control. So he basically made an area and put down wood chips. He made it look really nice. Anyway, he taught his dogs to do their thing on the wood chips and never had problems since.
Not sure if that's an option you want to pursue but I thought I'd throw that out there.
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