Index: binaries/data/mods/public/shaders/glsl/water_high.fs
===================================================================
--- binaries/data/mods/public/shaders/glsl/water_high.fs
+++ binaries/data/mods/public/shaders/glsl/water_high.fs
@@ -180,18 +180,24 @@
 	float specIntensity = clamp(pow(abs(dot(specVector, v)), 100.0), 0.0, 1.0);
 
 	specular = specIntensity*1.2 * mix(vec3(1.5), sunColor,0.5);
+	
+#if USE_SHADOWS_ON_WATER && USE_SHADOW
+	float shadow = get_shadow(vec4(v_shadow.xy, v_shadow.zw));
+#endif
+	
+	// for refraction, we want to adjust the value by v.y slightly otherwise it gets too different between "from above" and "from the sides".
+	// And it looks weird (again, we are not used to seeing water from above).
+	float fixedVy = max(v.y,0.01);
+	
+	float murky = mix(200.0,0.1,pow(murkiness,0.25));
 
 	float depth;
 #if USE_REAL_DEPTH
 	// Don't change these two. They should match the values in the config (TODO: dec uniforms).
 	float zNear = 2.0;
 	float zFar = 4096.0;
-	
-	// Okay so here it's a tad complicated. I want to distort the depth buffer along the waves for a nice effect.
-	// However this causes a problem around underwater objects (think fishes): on some pixels, the depth will be seen as the same as the fishes'
-	// and the color will be grass ( cause I don't distort the refraction coord by exactly the same stuff)
-	// Also, things like towers with the feet in water would cause the buffer to see the depth as actually negative in some places.
-	// So what I do is first check the undistorted depth, then I compare with the distorted value and fix.
+
+	// Compute real depth at the target point.
 	float water_b = gl_FragCoord.z;
 	float water_n = 2.0 * water_b - 1.0;
 	float waterDBuffer = 2.0 * zNear * zFar / (zFar + zNear - water_n * (zFar - zNear));
@@ -200,37 +206,39 @@
 	float undisto_z_n = 2.0 * undisto_z_b - 1.0;
 	float waterDepth_undistorted = (2.0 * zNear * zFar / (zFar + zNear - undisto_z_n * (zFar - zNear)) - waterDBuffer);
 	
-	vec2 depthCoord = clamp((gl_FragCoord.xy) / screenSize - n.xz*clamp( waterDepth_undistorted/400.0,0.0,0.05) , 0.001, 0.999);
-	
-	float z_b = texture2D(depthTex, depthCoord).x;
-	
-	if (z_b < undisto_z_b)
-		z_b = undisto_z_b;
-	float z_n = 2.0 * z_b - 1.0;
-	
-	depth = (2.0 * zNear * zFar / (zFar + zNear - z_n * (zFar - zNear)) - waterDBuffer);
+	// Set depth to the depth at the undistorted point.
+	depth = waterDepth_undistorted;
 #else
+	// fake depth computation: take the value at the vertex, add some if we are looking at a more oblique angle.
 	depth = waterDepth / (min(0.5,v.y)*1.5*min(0.5,v.y)*2.0);
 #endif
 	
 #if USE_FANCY_EFFECTS
 	depth = max(depth,fancyeffects.a);
 #endif
-	
-#if USE_SHADOWS_ON_WATER && USE_SHADOW
-	float shadow = get_shadow(vec4(v_shadow.xy, v_shadow.zw));
-#endif
-	
-	// for refraction, we want to adjust the value by v.y slightly otherwise it gets too different between "from above" and "from the sides".
-	// And it looks weird (again, we are not used to seeing water from above).
-	float fixedVy = max(v.y,0.01);
-	
-	float murky = mix(200.0,0.1,pow(murkiness,0.25));
-	
+
 #if USE_REFRACTION
+	// for refraction we want to distort more as depth goes down.
+	// 1) compute a distortion based on depth at the pixel.
+	// 2) Re-sample the depth at the target point
+	// 3) Sample refraction texture
+
 	// distoFactor controls the amount of distortion relative to wave normals.
 	float distoFactor = 0.5 + clamp(depth/2.0,0.0,7.0);
 	
+#if USE_REAL_DEPTH
+	vec2 depthCoord = clamp((gl_FragCoord.xy) / screenSize - n.xz * distoFactor / refractionCoords.z, 0.001, 0.999);
+	float z_b = texture2D(depthTex, depthCoord).x;
+	float z_n = 2.0 * z_b - 1.0;
+	float newDepth = (2.0 * zNear * zFar / (zFar + zNear - z_n * (zFar - zNear)) - waterDBuffer);
+
+	// try to correct for fish. In general they'd look weirder without this fix.
+	if (depth > newDepth + 3.0)
+		distoFactor /= 2.0; // this in general will not fall on the fish but still look distorted.
+	else
+		depth = newDepth;
+#endif
+
 	// Distort the texture coords under where the water is to simulate refraction.
 	refrCoords = (0.5 * refractionCoords.xy - n.xz * distoFactor) / refractionCoords.z + 0.5;
 	vec3 refColor = texture2D(refractionMap, refrCoords).rgb;
@@ -266,6 +274,7 @@
 	vec3 colll = mix(refColor*tint,refColor,ColextFact);
 	
 	refrColor = mix(color, colll, extFact);
+
 #else
 	// Apply water tint and murk color only.
 	float extFact = max(0.0,1.0 - (depth*fixedVy/murky));