Press a short stake at the top of the hillside. Walk down to the bottom to hammer in a taller stake where you want the terracing to end. Tie a string from one end of the stakes to the next.
Measure the height of the hillside. Divide the height of the hillside with the number of terraces that you want to build. For example, if the top of the terrace is 16 feet high and you want to build four terraces, each terrace will be one foot high. Gardeners with steep hillsides need more terraces than those with gentle slopes. Also, the types of plants you want to use also dictate the number of terraces. Large plants like trees and shrubs need more space than ground cover.
Press two stakes at each end of the proposed first terrace at the bottom of the hill. Tie a string on the stake to indicate how tall the terrace will be.
Dig a trench at the bottom of the hillside to create the first terrace. The trench must be 8 to 12 inches in depth. Pack the bottom of the trench with a tamping tool. Spread a 4 to 6 inch layer of sand on the bottom of the trench. Place a level on the sand to ensure that the bottom of the trench is flat.
Lay the terracing material you want to install at the bottom of the trench up to the string that indicates the height of the terrace. Gardeners may use terracing materials such as stones, wood or bricks.
Add the backfill mixed with potting soil in the back of the terrace. The backfill potting soil mixture must almost reach the height of the terrace. Adding too little soil will cause the terrace to cover any plants. Work your way up the hillside, creating terraces as you go. Plant shrubs, small trees, grass, ground cover or ornamental plants in the planting beds.