//use Render2Texture Dll by ChrisB
plugindir "."; //Comment this part
dllfunction r2T_eventSky(); //out if your
dllfunction r2T_eventEntities(); //3DGS edition
render_sky = r2T_eventSky; //supports
render_entities = r2T_eventEntities; //render to texture.
//

bmap waterbump = <waves.jpg>;
//bmap envspec = <sky.tga>;

function mtl_ffpwater_event();

material mtl_ffpwater
{
skin1=waterbump;
// skin2=envspec;

event = mtl_ffpwater_event;
effect = "water.fx";
}

function mtl_ffpwater_event()
{
while(1)
{
//Lets make it scroll in some direction
mtl_ffpwater.skill1 += 0.1*time_step; //Move the water along the x axis with the given speed
mtl_ffpwater.skill2 += 0.1*time_step; //Move the water along the y axis with the given speed
mtl_ffpwater.matrix31 = floatd(sin(mtl_ffpwater.skill1)*100000,40000);
mtl_ffpwater.matrix32 = floatd(cos(mtl_ffpwater.skill2)*100000,40000);
wait(1);
}
}

VIEW view_mirror { layer = -1; }; // render mirror view before camera view
BMAP* bmap_mirrortarget;
//panel rtt{flags = visible;}

function fx_mirror()
{
// do nothing if mirror is already running
if (bmap_mirrortarget) { return; }

bmap_mirrortarget = bmap_createblack(512,512,888);
mtl_ffpwater.skin2 = bmap_mirrortarget;
view_mirror.bmap = bmap_mirrortarget;
view_mirror.size_x = bmap_width(bmap_mirrortarget);
view_mirror.size_y = bmap_height(bmap_mirrortarget);
// rtt.bmap = bmap_mirrortarget;

// vec_set(view_mirror.portal_x,my.x);
// vec_add(view_mirror.portal_x,vector(0,0,0));
// vec_set(view_mirror.pnormal_x,vector(0,0,1.0)); // reflect upwards
// view_mirror.portalclip = on; // clip at portal plane

view_mirror.noshadow = on; // suppress shadows in the mirror
// view_mirror.nocull = on; // view through walls
view_mirror.noparticle = on;
// view_mirror.noshader = on;

view_mirror.visible = on;

while (bmap_mirrortarget)
{
proc_late(); // camera must be moved and mtlfx_mirrorvisible set before

// view_mirror.aspect = 1;//1024/768; // screen aspect, independent of render target
view_mirror.arc = camera.arc;
view_mirror.fog_start = camera.fog_start;
view_mirror.fog_end = camera.fog_end;
view_mirror.clip_far = camera.clip_far;
view_mirror.clip_near = camera.clip_near;
view_mirror.x = camera.x;
view_mirror.y = camera.y;
view_mirror.z = 2*my.z-camera.z;//view_mirror.portal_z-camera.z; // move the camera at its mirror position
view_mirror.pan = camera.pan;
view_mirror.tilt = -camera.tilt; // flip the vertical camera angle
view_mirror.roll = -camera.roll;

wait(1);
}
}

action Water
{
mtl_ffpwater.matrix11 = float(100); //Tilefactor of the Bumpmap in x direction
mtl_ffpwater.matrix22 = float(100); //Tilefactor of the Bumpmap in y direction

bmap_to_mipmap(mtl_ffpwater.skin1);
// bmap_to_mipmap(mtl_ffpwater.skin2);

my.material = mtl_ffpwater;
fx_mirror();
}

--------------------------------------------------------------------------------

Create an other file with the following code and save it as water.fx:

////////////////////////////////////////////////////////
// Environment Mapping Bump Mapping Water
//
// Version 2
//
// Eric Hendrickson-Lambert (Steempipe)
//
////////////////////////////////////////////////////////

matrix matMtl;

texture mtlSkin1;
texture mtlSkin2;

technique makewater2
{
pass p0
{
AlphaBlendEnable=false;
Zenable = True;
ZwriteEnable = True;

BlendOp=Add;
Lighting=True;

Texture[0] = <mtlSkin1>;
Texture[1] = <mtlSkin2>;

magFilter[0] = linear;
minFilter[0] = linear;
mipFilter[0] = linear;

COLOROP[0] = BumpEnvMap;
COLORARG1[0] = Texture;
COLORARG2[0] = Current;

TexCoordIndex[0] = 1;
TextureTransformFlags[0] = Count2;
TextureTransform[0] = <matMtl>;


magFilter[1] = Linear;
minFilter[1] = Linear;
mipFilter[1] = Linear;

AddressU[1] = Clamp;
AddressV[1] = Clamp;

ColorOp[1] = Modulate; //Modulate/AddSigned/Modulate2x/Modulate4x/Add <----------This looks all okay
ColorArg1[1] = Texture;
ColorArg2[1] = Current;

texcoordindex[1] = cameraspaceposition | 1; // For cubemap use: cameraspacereflectionvector
TextureTransformFlags[1] = count3 | projected;
TextureTransform[1] = {
0.8, 0.0, 0.0, 0.0,//u-scale of lake rgb texture CHANGE THIS TO YOUR NEEDS!
0.0, 1.0, 0.0, 0.0,//v-scale of lake rgb texture CHANGE THIS TO YOUR NEEDS!
0.0, 0.0, 1.0, 0.0,
0.0, 0.0, 0.0, 1.0
};
}
}

//technique fallback { pass p0 { } }