Terrace Heights is located on land identified by the first river lot and township surveys of the Edmonton Settlement as part of River Lots 31 and 33 and a quarter section of land held by D. McLeod.
McLeod was a Hudson Bay Company employee, turned sawmill operator, who, in 1883, pioneered regular weekly stagecoach travel between Edmonton and Calgary. In effect, the Terrace Heights neighbourhood is two quiet single-unit residential areas separated by a high density residential and commercial corridor along 101 Avenue. Civic ward: Métis. District: Southeast. City boundary records effective 1981-10-01.