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Rhoda Lipton and Benny di Zitti live life on the edge, and the view is spectacular.

Their 3,500-square-foot, custom-built home is perched on the edge of the 80-foot Irvine River gorge in Elora. Dug into the fossil-laden bedrock, the house is an inspired testament to a perfect marriage between science and creativity.

"I must admit it was quite a process getting here," says Mr. di Zitti, a 62-year-old semi-retired architect and environmental consultant, who for years worked for the World Bank on international urban development projects. "It took a full year to even find out if we could build here."

It all began in 1991 when he and his wife -- then Toronto residents -- read a story in The Globe and Mail about Elora, the picturesque little town along the Grand River known for its wonderful old limestone buildings and thriving artistic community. They also noticed a smaller real estate piece about a house for sale that overlooked one of the town's two scenic gorges. Intrigued, they called the listing agent, hopped in the car and made the hour-and-a-half drive to check it out.

"We didn't care too much for the house, but we loved the site," Mr. de Zitti recalls. "It was at that point I thought I might as well design our own house."

Captivated by the scenery and lured by the promise of a slower, more relaxing pace of life, the couple began hunting for a similar piece of land in the area. When a real estate agent showed them an unusual two-acre property that spanned both sides of the Irvine River gorge, they fell in love with it. The catch was that it was zoned "hazard land." It sloped steeply down from the road, was very close to the gorge and extremely uneven. Still, Mr. di Zitti saw its potential.

The couple had to get permission from the local conservation authority to build there, mostly because of the threat of spring flooding from a small, nearby waterfall. The municipality had to agree to rezone the land residential, and a geotechnical survey was required to ensure the cliff wouldn't crumble and take their dream house with it.

With the stars aligned and the permits finally in place, excavation began in 1993. "It was an inspired labour of love right from the start," says Ms. Lipton, 69, a former registered nurse, entrepreneur and patron of the arts who met her husband when they were both doing their masters in environmental studies.

"This house has become my paradise, and I have to say there's never been anything but joy in it."

Limestone bedrock excavated during the preparation of the site was used to construct the front portion of the house, which looks like a century-old farm silo. A prized, ancient pine door with large iron hinges greets visitors who make their way from the parking area at street level. The couple say they loved the door so much, they built the house around it.

The back of the dwelling is a modern configuration made of stucco, behind which are 6½-inch insulated concrete forms. According to Mr. di Zitti, theirs is only the second house in Canada to use the super-strong, energy-efficient concrete forms. "A tornado couldn't take this down," Ms. Lipton jokes.

There are abundant, oversized windows at the back and on the sides of the house, blurring the line between indoors and out, and providing incredible views of the stunning, professionally landscaped garden, salt water pool, and the 100-year-old, gorge-hugging trees out back.

"Everything feels like outside," Ms. Lipton says. Enormous limestone boulders, also found on the property, are positioned around the swimming pool, giving it a rustic look in keeping with the rocky landscape. In the background, you can hear the soft swoosh of the rushing water below the gorge.

"This site speaks to you so you're led to do certain things almost automatically -- if you listen to what it says," Mr. di Zitti explains.

The interior of the house is equally inspired, filled with an eclectic mix of original art and furniture that reveals much about its owners' personalities. The best words to describe the house are colourful, fun, informal and inviting. From the Italian leather turquoise sofa to the winding structural-steel staircase and the one-of-a-kind bar made by Guelph artists Heather and John Zondervan of Metallic Evolution, it's abundantly clear these are people who like to experiment, and who fully appreciate the creative process.

Over all, the two-storey house has five bathrooms, two offices and three bedrooms, including one with a ladder leading up to a secret sleeping loft, built with the couple's four grandchildren in mind.

The main-floor master bedroom has a wall of windows and sliding glass doors leading out to the pool and patio, a huge built-in closet and an Indian slate floor under which is radiant heating.

The rest of the main floor is open-concept, with a huge corner fireplace and an 18-foot ceiling in the "grand room," adjacent to the informal dining area and well-equipped kitchen. In the latter, a small secondary sink has been made using a leftover piece of the TransCanada Pipeline. Clearly, there's no lack of conversation pieces here.

"We do have a lot of interesting things," Ms. Lipton agrees, "but what I love best about this house is the way it's so livable."

It took roughly five years and about $1.1-million to design and build the house, which is just 15 feet from the edge of the gorge at the closest point. "And it's still a work in progress," Mr. di Zitti says. It was originally intended to be a country getaway, but has become the couple's primary residence. (They still have a condo at Yonge and St. Clair in Toronto.)

Not only have they totally embraced their country home, they've also fully integrated themselves into the local community, doing volunteer work and sitting on assorted committees. Ms. Lipton is also co-owner of the Elora General Store, situated in a beautiful 1866 building in town.

"This is a most interesting community," Mr. di Zitti says. "It's just beautiful here, and it's so diverse. We have Mennonites, musicians, exceptional visual artists and world-renowned professionals all living side by side. It's a wonderful mix. We were attracted to it like bees to honey."