If you look at the grass from under it (you look at sky, and have grass between you and sky) its transparent, while you look at water (grass is between you and water) there is white alpha{F42454}
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That's an arma issue, will wait for terrain guys to have a say on this but its an engine issue.
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Off the record - so the way to revert before Visual Update is only pirating arma? How thery could mess this game so bad, its a shame developers didnt give us a choice to choose VA or not.
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As far as i know that issue has been present since the early A3 alphas, you can probably find a few threads around the BI forums or reddit that explain how to soften the edge effect.