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Gully formation has been associated to groundwater seepage in unconsolidated sand- to gravel-sized sediments. Our understanding of gully evolution by groundwater seepage mostly relies on experiments and numerical simulations, and these rarely take into consideration contrasts in lithology and permeability. In addition, process-based observations and detailed instrumental analyses are rare. As a result, we have a poor understanding of the temporal scale of gully formation by groundwater seepage and the influence of geological heterogeneity on their formation. This is particularly the case for coastal gullies, where the role of groundwater in their formation and evolution has rarely been assessed. We address these knowledge gaps along the Canterbury coast of the South Island (New Zealand) by integrating field observations, luminescence dating, multi-temporal unoccupied aerial vehicle and satellite data, time domain electromagnetic data and slope stability modelling. We show that gully formation is a key process shaping the sandy gravel cliffs of the Canterbury coastline. It is an episodic process associated to groundwater flow that occurs once every 227 d on average, when rainfall intensities exceed 40 mm d -1. The majority of the gullies in a study area southeast (SE) of Ashburton have undergone erosion, predominantly by elongation, during the last 11 years, with the most recent episode occurring 3 years ago. Gullies longer than 200 m are relict features formed by higher groundwater flow and surface erosion >2 ka ago. Gullies can form at rates of up to 30 m d -1 via two processes, namely the formation of alcoves and tunnels by groundwater seepage, followed by retrogressive slope failure due to undermining and a decrease in shear strength driven by excess pore pressure development. The location of gullies is determined by the occurrence of hydraulically conductive zones, such as relict braided river channels and possibly tunnels, and of sand lenses exposed across sandy gravel cliffs. We also show that the gully planform shape is generally geometrically similar at consecutive stages of evolution. These outcomes will facilitate the reconstruction and prediction of a prevalent erosive process and overlooked geohazard along the Canterbury coastline. [ABSTRACT FROM AUTHOR]