From Dust

From dust has some amazing water simulation for being done in real time and in a relatively small game. Released in 2011 it was a Puzzle game for the Xbox 360, PS3 and PC, with its main mechanics being the manipulation of terrain and water to spread the population of a small tribe.

The water reacts realistically and features huge tidal waves that wash over the islands, rivers, water erosion, and lava.

The differences in the behaviour between water and lava are interesting and the shaders, while stylised, are believable and effective in their representation of the different materials.