Terrace Reservoir is located in Conejos County, Colorado northwest of the town of Capulin.

The reservoir is owned by the Terrace Irrigation Company, which uses the water it stores to irrigate agricultural crops in the nearby San Luis Valley.

The lake and the land immediately surrounding it are also designated as the Terrace Reservoir State Wildlife Area.

The reservoir drains to the Alamosa River through a penstock on the southern segment of the dam.

This Colorado state location article is a stub.