Rio Terrace was previously part of the Town of Jasper Place, an area annexed to the City of Edmonton in 1964. Rio Terrace is bounded on the south by the North Saskatchewan River Valley, and by a ravine on the north. 

A large majority of the homes were built in the 1960s, and almost all are single-detached dwellings. Other land uses in the neighbourhood include an elementary school, community league, a church and a park. These facilities are located in the west-central area of the neighbourhood. Rio Terrace has no commercial business sites. However, residents have easy access to retail and service businesses within Edmonton via Whitemud Drive. 

Fort Edmonton Park is also located nearby, on the other side of the river. Rio Terrace was likely named in 1958. As the word “rio” is Spanish for “river,” Rio Terrace is likely a descriptive name for the neighbourhood that overlooks the North Saskatchewan River Valley