diff --git a/apps/openmw/mwrender/renderingmanager.cpp b/apps/openmw/mwrender/renderingmanager.cpp
index 97312b697..c2ad2a043 100644
--- a/apps/openmw/mwrender/renderingmanager.cpp
+++ b/apps/openmw/mwrender/renderingmanager.cpp
@@ -27,6 +27,8 @@ RenderingManager::RenderingManager (OEngine::Render::OgreRenderer& _rend, const
     mTerrainManager = new TerrainManager(mRendering.getScene(),
                                          environment);
 
+    mWater = 0;
+
     //The fog type must be set before any terrain objects are created as if the
     //fog type is set to FOG_NONE then the initially created terrain won't have any fog
     configureFog(1, ColourValue(1,1,1));
@@ -39,8 +41,7 @@ RenderingManager::RenderingManager (OEngine::Render::OgreRenderer& _rend, const
 
     // disable MRT if it is unsupported
     const RenderSystemCapabilities* caps = Root::getSingleton().getRenderSystem()->getCapabilities();
-    if (caps->getNumMultiRenderTargets() < 2
-        || (!caps->isShaderProfileSupported("fp40") && !caps->isShaderProfileSupported("ps_3_0")))
+    if (caps->getNumMultiRenderTargets() < 2)
         Settings::Manager::setBool("multiple render targets", "Render", false);
 
     if (Settings::Manager::getBool("multiple render targets", "Render"))
@@ -73,8 +74,6 @@ RenderingManager::RenderingManager (OEngine::Render::OgreRenderer& _rend, const
 
     mOcclusionQuery = new OcclusionQuery(&mRendering, mSkyManager->getSunNode());
 
-    mWater = 0;
-
     mPlayer = new MWRender::Player (mRendering.getCamera(), playerNode);
     mSun = 0;
 
@@ -311,6 +310,8 @@ void RenderingManager::configureFog(const float density, const Ogre::ColourValue
     CompositorInstance* inst = CompositorManager::getSingleton().getCompositorChain(mRendering.getViewport())->getCompositor("gbuffer");
     if (inst != 0)
         inst->getCompositor()->getTechnique(0)->getTargetPass(0)->getPass(0)->setClearColour(colour);
+    if (mWater)
+        mWater->setViewportBackground(colour);
 }
 
 
diff --git a/apps/openmw/mwrender/sky.cpp b/apps/openmw/mwrender/sky.cpp
index 02af314a8..43ef31d86 100644
--- a/apps/openmw/mwrender/sky.cpp
+++ b/apps/openmw/mwrender/sky.cpp
@@ -913,3 +913,13 @@ Ogre::SceneNode* SkyManager::getSunNode()
     if (!mCreated) return 0;
     return mSun->getNode();
 }
+
+void SkyManager::setSkyPosition(const Ogre::Vector3& position)
+{
+    mRootNode->_setDerivedPosition(position);
+}
+
+void SkyManager::resetSkyPosition()
+{
+    mRootNode->setPosition(0,0,0);
+}
diff --git a/apps/openmw/mwrender/sky.hpp b/apps/openmw/mwrender/sky.hpp
index baf5933cb..c18b9f484 100644
--- a/apps/openmw/mwrender/sky.hpp
+++ b/apps/openmw/mwrender/sky.hpp
@@ -168,6 +168,9 @@ namespace MWRender
         void setGlare(const float glare);
         Ogre::Vector3 getRealSunPos();
 
+        void setSkyPosition(const Ogre::Vector3& position);
+        void resetSkyPosition();
+
     private:
         bool mCreated;
 
diff --git a/apps/openmw/mwrender/water.cpp b/apps/openmw/mwrender/water.cpp
index 7e9dd957b..cce25d1e9 100644
--- a/apps/openmw/mwrender/water.cpp
+++ b/apps/openmw/mwrender/water.cpp
@@ -36,8 +36,8 @@ Water::Water (Ogre::Camera *camera, SkyManager* sky, const ESM::Cell* cell) :
                         + RV_Statics * Settings::Manager::getBool("reflect statics", "Water")
                         + RV_StaticsSmall * Settings::Manager::getBool("reflect small statics", "Water")
                         + RV_Actors * Settings::Manager::getBool("reflect actors", "Water")
-                        + RV_Misc * Settings::Manager::getBool("reflect misc", "Water");
-                        //+ RV_Sky;
+                        + RV_Misc * Settings::Manager::getBool("reflect misc", "Water")
+                        + RV_Sky;
     mReflectDistance = Settings::Manager::getInt("reflect distance", "Water");
 
     mWaterNode = mSceneManager->getRootSceneNode()->createChildSceneNode();
@@ -145,11 +145,14 @@ void Water::preRenderTargetUpdate(const RenderTargetEvent& evt)
     if (mReflectDistance != 0)
         mCamera->setFarClipDistance(mReflectDistance);
 
-	if (evt.source == mReflectionTarget)
-	{
-		mCamera->enableCustomNearClipPlane(Plane(Vector3::UNIT_Y, mTop));
-		mCamera->enableReflection(Plane(Vector3::UNIT_Y, mTop));
-	}
+    if (evt.source == mReflectionTarget)
+    {
+        Vector3 pos = mCamera->getRealPosition();
+        pos.y = mTop*2 - pos.y;
+        mSky->setSkyPosition(pos);
+        mCamera->enableCustomNearClipPlane(Plane(Vector3::UNIT_Y, mTop));
+        mCamera->enableReflection(Plane(Vector3::UNIT_Y, mTop));
+    }
 }
 
 void Water::postRenderTargetUpdate(const RenderTargetEvent& evt)
@@ -158,11 +161,12 @@ void Water::postRenderTargetUpdate(const RenderTargetEvent& evt)
 
     mCamera->setFarClipDistance(mOldCameraFarClip);
 
-	if (evt.source == mReflectionTarget)
-	{
-		mCamera->disableReflection();
-		mCamera->disableCustomNearClipPlane();
-	}
+    if (evt.source == mReflectionTarget)
+    {
+        mSky->resetSkyPosition();
+        mCamera->disableReflection();
+        mCamera->disableCustomNearClipPlane();
+    }
 }
 
 Ogre::MaterialPtr Water::createMaterial()
@@ -199,4 +203,10 @@ Ogre::MaterialPtr Water::createMaterial()
     return mat;
 }
 
+void Water::setViewportBackground(const ColourValue& bg)
+{
+    if (mReflectionTarget)
+        mReflectionTarget->getViewport(0)->setBackgroundColour(bg);
+}
+
 } // namespace
diff --git a/apps/openmw/mwrender/water.hpp b/apps/openmw/mwrender/water.hpp
index 8e9014833..964a8c735 100644
--- a/apps/openmw/mwrender/water.hpp
+++ b/apps/openmw/mwrender/water.hpp
@@ -50,6 +50,8 @@ namespace MWRender {
 
         void toggle();
 
+        void setViewportBackground(const Ogre::ColourValue& bg);
+
         void checkUnderwater(float y);
         void changeCell(const ESM::Cell* cell);
         void setHeight(const float height);
diff --git a/files/water/water.cg b/files/water/water.cg
index 10b42eec0..188c37709 100644
--- a/files/water/water.cg
+++ b/files/water/water.cg
@@ -76,7 +76,7 @@ void main_fp
 
     // fresnel
     float facing = 1.0 - max(abs(dot(normalize(iEyeVector.xyz), normal.xyz)), 0);
-    float reflectionFactor = saturate(0.3 + 0.7 * pow(facing, 2));
+    float reflectionFactor = saturate(0.35 + 0.65 * pow(facing, 2));
 
     oColor.xyz = lerp(refraction.xyz, reflection.xyz, depth1 * reflectionFactor);