Bintrees based on longest edge bisection and hierarchies of diamonds are popular multiresolution techniques on regularly sampled terrain datasets. In this work, we consider Sparse Terrain Pyramids as a compact multiresolution representation for terrain datasets whose samples are a subset of those lying on a regular grid. While previous diamond-based approaches can efficiently represent meshes built on a complete grid of resolution (2k +1)2, this is not suitable when the field values are uniform in large areas or simply non-existent. We explore properties of diamonds to simplify an encoding of the implicit dependency relationship between diamonds. Additionally, we introduce a diamond clustering technique to further reduce the geometric and topological overhead of such representations. We demonstrate the coherence of our clustering technique as well as the compactness of our representation.