I think I am progressing at a healthy pace with my town level for the game. Since the last post I have received a foliage pack from the college, this allowed me to easily add trees, rocks, grass, and a waterfall. Other changes include making the watermills larger as well as the addition of a potions shop.
I am still deciding on whether or not to add any grass, as they do give me a few performance issues with the engine. My slight problem with lag was remedied by deleting any unused landscape, as I decided to cover the whole map when starting the level.
I would still like to find more appropriate lighting for the scene and add some effects to the waterfall, however I am happy with the progress made at the current time.