Matt's suggestion of using the Lake object for rivers works quite well, especially with the files GC2 output Cajomi mentioned. I was working on images for ME-DEM doing just that before my computer died a horrible death. GC2's output works so well because it is an actual derivative of the heightfield and not generated manually in PS ,for example, so it blends very good. Just plug your water terrain into the water shader above the lake object.
The only thing I noticed while experimenting with this is the increased render time that comes with water in images.
I looked for images on my external harddrive but had not archived any there, so all was lost when my graphics computer failed massively,,,,and this laptop isn't up to rendering the tgd's I had anyway. SeerBlue