River terraces are well developed in Miaoli Hills. Nine surfaces are recognized, including six lateritic surfaces and three non-lateritic surfaces, and are correlated as LH, LT and FT, respectively. Terrace surfaces older than LT5 have been extensively deformed by recent tectonic events. For examples, terraces in Sanyi area have been tilted northward due to the movement of Sanyi Fault, and the surfaces along the Tunglo Syncline have been warped. According to the altitude and characteristics of lateritic soil and gravels, the southern part of the terraces in Miaoli Hills was formed by Taan River, whereas the northern part was formed by Houlung River, which shifted from south to north since late Pleistocene.