Tatooine was once a lush world that had large oceans and a world-spanning jungle inhabited by the native and technologically advanced Kumumgah. Against the elder's wishes they colonized nearby star systems but this drew the attention of the Rakata. In 25,783 BBY, the Rakatan Infinite Empire invaded the planet, conquered and enslaved its native inhabitants and then abducted many to their other conquered worlds. After a terrible plague weakened the Rakata, the Kumumgah eventually rebelled and managed to drive the Rakata off the planet. In response they subjected the planet to an orbital bombardment that "glassed" (that is, fused the silica in the soil into glass, which then broke up over time into sand) the planet and boiled its oceans away.

~Wookipedia on the history of Tatooine

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