Terrains can be rasterized based on any extent, cell size, and vertical tolerance. You can choose between linear and natural neighbor interpolators. The latter generally produces higher quality results but at the expense of processing time. Rasterization is performed using the Terrain to Raster geoprocessing tool.

Keeping the Output Data Type as FLOAT will preserve vertical precision. Changing the interpolation Method to NATURAL_NEIGHBORS will take a little longer than LINEAR but it adds some smoothness everywhere except across hard breaklines where sharp discontinuities are supposed to occur. Setting an explicit Sampling Distance lets you know exactly what the output cell size will be. The pyramid resolution represents the z-tolerance of the desired pyramid level. In this terrain, the pyramid level with a resolution of 1.0 has the breaklines enabled. This surface will be somewhat generalized relative to the full-resolution data but not by much, and this process will run faster because it’s using a thinned version of the data.