A compact backyard subdivided by a series of narrow terraces was transformed back to its original contours to create a more open, useful and inviting space. A single terrace was formed by cutting into the slope with two perpendicular wing walls. Stadium-style seats diminish the height of the walls while creating a cozy sitting nook with a shelf for container plantings. A dry stream bed provides visual effect as well as management for drainage runoff, and groundcover plantings prevent erosion on the slope.