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The Collaborative International Dictionary of English v.0.48:

Terrace \Ter"race\, v. t. [imp. & p. p. Terraced; p. pr. & vb. n. Terracing.] To form into a terrace or terraces; to furnish with a terrace or terraces, as, to terrace a garden, or a building. --Sir H. Wotton. [1913 Webster] Clermont's terraced height, and Esher's groves. --Thomson. [1913 Webster]