Grand Terrace lies between mountain ridges. To the east is Blue Mountain, and to the west are the La Loma Hills.

This 3.6 square mile community, with a population of about 14,400 has an average elevation of 1,065 feet. It's motto, inscribed on the City flag is "The Blue Mountain City."

Grand Terrace's roots go back to Mexican land grants dating from the period between 1830 and 1840. According to the Riverside Press, in 1876 there were nine buildings in the Terrace-Colton area.