One way to approach it would be to use a Toro Evolution controller with one of these:
http://www.sprinklerwarehouse.com/EVO-SC-p/evo-sc.htm
which can take wireless input from up to 3 soil moisture sensors and (possibly) your wireless rain sensor also.
I'd say the *only* thing favoring the Toro soil moisture sensor is its low price. It would be infinitely better if an arduino could intercept the raw data transmitted by the wireless soil moisture sensor. I haven't explored the feasibility of that, but with enough effort it should be possible. So, the relevant question is: how much effort? Without access to the raw data, I'm not sure it's worth the bother, as the out-of-the-box Toro receiver has some useability flaws that will be arduous to work around. If the out-of-the-box receiver proves difficult to hack, then I imagine the EVO-SC receiver (above link) would be a good candidate for tapping into the raw data after it has been received. Either way, it would to be a project, not a plug-and-play that gives instant satisfaction.