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How to activate distant terrain in latest nightly build?
I already add "distant terrain = True" to settings.cfg, but nothing has changed.

You have to change "view distance" to bigger number. I have it set to 66660.

The distant terrain setting itself is a bit of a misnomer. All it does is ensures terrain stretches as far as the view distance. If you're using the default view distance, though, the default terrain system already reaches that far, so you get no benefit (except potentially higher performance when changing between cells at the expense of greater memory usage).

As jirka642 said, if you want a visible improvement with that setting, it should be used in conjunction with an increased view distance.

Thank you, guys!
I didn't know that "view distance" is connected with distant terrain.

The thing is that distant terrain = true activates the distant terrain, but you can't actually see the distant terrain if your view distance is in the normal range.