These pictures introduce the basic features of a martian gully. The figure on the left is an example from Mars, the figure on the right is a gully on Earth. In the Earth picture, rain water flowing under and seeping along the base of a recently-deposited volcanic ash layer has created the gully. For Mars, water is not actually seen but is inferred from the landforms and their similarity to examples on Earth.
Water seeps from between layers of rock on the wall of a cliff, crater, or other type of depression.
The alcove forms above the site of seepage as water comes out of the ground and undermines the material from which it is seeping. The erosion of material at the site of seepage causes rock and debris on the slope above this area to collapse and slide downhill, creating the alcove. The channel forms from water and debris running down the slope from the seepage area. The point where the top of the channel meets the bottom of the alcove is, in many cases, the site where seepage is occurring. Channels are probably flushed-clean of debris from time to time by large flash floods of water released from behind an ice barrier that might form at the site of seepage during more quiescent times.