Ok yeah, it's happening when I create the ground mesh in OZ still...going to do further testing to see if I can pinpoint what's causing it. It didn't occur until I changed the underwater texture to something other than the above water texture.
Edit: It looks like the problem is caused by changing the underwater texture AFTER you've created your ground mesh in OZ. It's working fine and there's no distorting unless I change the underwater texture after the mesh is already created.
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