The second (and last part) of the Terrain Update focuses mostly on water. Here is an overview of the most important changes:
New water types
Water can now be, hot, cold, frozen, and murky. Each type creates it's own challenges. For example Murky water might be infested with Bog Worms. Avoid them by watching out for ripples in the water.
Waterfalls and underwater passages
Water can now also hide passages. There are places where you can swim underneath rocks to find hidden caverns. Like wise the new waterfalls can also hide passages. You'll need to explore just a little better.
Water can be frozen
We did mention frozen water, right? With the new staff of cold you can freeze water yourself. The staff is still quite rare, but that is expected to change, as we're still upgrading the generator to accommodate all the new material.
Mines
Certain levels contain ore, which you can mine using a shovel (for now). Be careful though, minerals might not be the only thing you'll find.
Flowers and mosses
A couple of rare species of flowers and mosses have appeared in the Dungeon of Doom. It is said that their seeds can be used to help or harm would-be heroes. One tip: they're still plants. They do burn.
Drain Magic is now a gas
Drain magic now works as a gas. Walking through Drain Magic clouds does drain your magic weapons, but it deals damage to wardens and prevents other creatures from using magic spells. Use wisely.
New creatures
This upgrade adds Earth Elementals, Water Elementals, Flesh Golems, Bog Worms, and it improves Fire Elementals. There is a couple of new bosses as well: The Wolf of Winter, Fyra, and Anden, the Air Elemental.
Development continues...
So this concludes the Terrain Update cycle for now. There is a bunch of loose ends, and a list of bugs to fix. You can expect minor changes and tweaks to follow as part of other upgrades.
We will focus on bugs for a little while now. The next main update cycle will focus on mysteries. In this cycle you can expect the dungeon rooms (as opposed to the caverns) to get more definition and more mysteries to unravel.