diff --git a/apps/openmw/mwrender/water.cpp b/apps/openmw/mwrender/water.cpp
index c4dffb7a4..dbfee05df 100644
--- a/apps/openmw/mwrender/water.cpp
+++ b/apps/openmw/mwrender/water.cpp
@@ -272,6 +272,12 @@ public:
 
     void setWaterLevel(float waterLevel)
     {
+        const float refractionScale = std::min(1.0f,std::max(0.0f,
+            Settings::Manager::getFloat("refraction scale", "Water")));
+
+        setViewMatrix(osg::Matrix::scale(1,1,refractionScale) *
+            osg::Matrix::translate(0,0,(1.0 - refractionScale) * waterLevel));
+
         mClipCullNode->setPlane(osg::Plane(osg::Vec3d(0,0,-1), osg::Vec3d(0,0, waterLevel)));
     }
 
diff --git a/files/settings-default.cfg b/files/settings-default.cfg
index aec667a9c..35748d516 100644
--- a/files/settings-default.cfg
+++ b/files/settings-default.cfg
@@ -376,6 +376,9 @@ reflect actors = false
 # Overrides the value in '[Camera] small feature culling pixel size' specifically for water reflection/refraction textures.
 small feature culling pixel size = 20.0
 
+# By what factor water downscales objects. Only works with water shader and refractions on. 
+refraction scale = 1.0
+
 [Windows]
 
 # Location and sizes of windows as a fraction of the OpenMW window or