La Terrasse-sur-Dorlay (French pronunciation: [la tɛʁas syʁ dɔʁlɛ]) is a commune in the Loire department in central France.

La Terrasse-sur-Dorlay takes its name from the Dorlay river, a tributary of the Gier, which flows through the commune.

The dam on the Dorlay with storage capacity of 2,500,000 cubic metres (88,000,000 cu ft), is just upstream from the village.

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