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]