Originally posted by ttv/SwinzieTV:

Alright, since no one seems to have mentioned it clearly:
The Hoe can:
-Raise the ground
-Average/flatten out the land around the circled area based on certain criteria
-Create Paths

Hoe Flatten Mechanics:
Mechanic 1: Left clicking anywhere on the ground will raise/lower and flatten the area to THE SAME HEIGHT OF WHERE YOU ARE STANDING if the terrain permits it. Useful for levelling out terrain for buildings.
Mechanic 2: Holding Shift and Left clicking anywhere will AVERAGE OUT THE TERRAIN AROUND WHERE YOU HAVE CLICKED. Useful for creating smooth ramps.

Tips:
-When using Mechanic 1: Work from under your feet outwards to achieve flat ground using the raise mechanic to fix low spots and the pickaxe to chip out high spots, after you have raised or chipped proceed to use the flatten mechanic again on the spot you just modified.
-When using mechanic 2: Work from the area that you first clicked and going 1/4 of the circle distance at a time to achieve smooth ramps/ground

I hope this helps to clear out the confusion of the mechanics of the Hoe tool.

oh man thanks for the tip with the shift+ click . i am going to try it right away.