Determine the whereabouts of underground utility lines by contacting local utility companies so you won't accidentally cut or dig up your utility lines.
Dig a level trench 4 inches deep that is perpendicular to the slope of the hillside and slightly longer than the railroad tie. Save the soil you dig out to use as backfill.
Set the railroad tie in the trench and tamp along its length with the sledgehammer to ensure it is level.
Set a second tie on top of the first and drive railroad spikes or rebar through the holes at either end of the railroad ties and into the ground to hold them in place.
Tuck plastic landscaping fabric under the lower back corner of the railroad tie wall and bring the landscaping fabric up to the tip of the wall. The plastic fabric protects soil and plants from creosote damage and will allow you to build a garden.
Backfill the wall with retained soil and cover with topsoil until level with the top tie.
Repeat Steps 2 to 4 if you require a second or third terrace.
Stagger the location of terraces to direct water flow throughout the slope.
Seed soil or plant terraces to retain soil and improve drainage.