Theoretically, spectral method has the highest accuracy among present numerical methods, but it is generally difficult to apply to complex terrains because of complex boundary conditions. Recently, spectral-element method, basically divide the domain into a set of rectangular subdomain and solve the equation at each subdomain, has been introduced. However, boundary conditions become more complex and requires more computing time, thus spectral-element method is not powerful for all complex terrain problems. In this paper, potential flow theory was intorduced to solve the air flows and diffusion phenomenon in the presence of terrain obstacles. Using the velocity potential-stream line orthogonal coordinate space, the diffusion problems of hilly terrain by pseudospectral method were solved and compared those with no terrain real scale solutions.