Blend terrain in with water

If I put my terrain so a few hills are pokeing out of a plane of water, from stanfing next to them, they look ok. Nice and smooth. If i go to a high altitude, though, (say around 2000+ units) the edges seem to fuzz and flicker against the terrain. How do I fix this??

Zbuffer precision problem. Increase the near clip plane of the camera and decrease the far clip plane as much as possible.