I'd say the forgeound definitely reads as water, with the reflections and all, and the blades of grass further back imply the beginning of land. All the way back by the mountains however, the horizontal lines read as water to me again, so it's a bit hard to figure out exactly what's going on.
The reflections and mountains are really nicely done though :)
I feel that you could move the two mountain layers a bit to have a more interesting overlapping of them. Right now they are aligned in a way that makes their individual silhouettes not work nicely against each other.