This tutorial should help teach you how to blend separate terrain meshes with different textures on them so that there will be a smooth transition from one to the other.
Alpha Blending Terrain
This tutorial should help teach you how to blend separate terrain meshes with different textures on them so that there will be a smooth transition from one to the other.
In this first step you will want to create three separate terrain patch meshes.
Now find the two textures that you want to blend together and texture the middle texture one of them and the outer two textures the other texture.
A note on alpha blending textures used. Basically you need textures that can be blend on the alpha channel. You might have noticed two different types of names for the textures (one with a "_" and one with a "@"). Those that have the "@" in their name are solid textures that the player can walk on without falling through. Those with the "_" in their name will normaly be invisible and not solid in game. So to make a good alpha blend you need one of each type. (Special thanks to Kalahad)
Now copy and paste the middle terrain and move it out of the way for the moment. In the pick I have edited the terrain a little just for looks. Texture this forth mesh with the texture you used for the outer meshes.
Now we are going to alpha edit the middle mesh to start the blending process. Highlight the middle mesh and hit "Y" which will bring up the "Advanced Patch Editing Options" dialog box. In the dialog box select "Flatten" and "Alpha" and uncheck "Allow Soft Selection...". Now as you move your mouse over the patch you will see a set of concentric circles that determine the surface area of the blend. These can be set to your liking in the dialog box with the sliders.
Once you have set the inner and outer radius hold down "Alt" and use your mouse buttons to blend the texture on the mesh. Your left mouse button blends it away and your right mouse button brings it back.
Now hit "Y" and unselect the patch. It should lack texture where you blended it.
Now we will perform the same process to the fourth mesh but blend it in the inverse location that you did the middle mesh.
Deselect the fourth mesh and move it over and on top of the middle mesh and you should have finished blended terrain.
Last I added some water and a skybox with spawn so I could test it out in game.
Make sure you don't have OpenGL Lighting activiated under the view menu. If it's activated the blending won't show.