Terrace Gardens consists of a series of pavilions scattered across the site, taking full advantage of the tropical climate. The cluster type development created a residential scale that would be familiar and meaningful to older residents from both European and Aboriginal backgrounds. This design was developed after extensive consultation with residents, staff, management, local community members and other service providers in Palmerston and Darwin.

Modules are located to take advantage of the prevailing winds and to allow residents to live outdoors if they wish. The pavilions have been sited to minimise travel distances and separation between units, while allowing for airflow and openness, privacy and views.

Flexibility was essential to the design as the needs and characteristics of the resident population will be constantly changing, both short and long term. These residents have a variety of cultural, emotional and physical requirements that need to be catered for. Design principles, such as redundant cueing, were incorporated to meet the needs of people with dementia.

The design relied upon the creation of a series of modules that are repeated across the site in differing relationships to one another. This uniformity reduced building complexity and costs without creating a large, institutional or repetitive building. Each cluster comprises two bedroom pavilions and a social pavilion. The pavilions are placed around a courtyard garden and are linked by a walkway that provides both weather protection and cross ventilation.