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So I was wondering how terrain should be placed in mk3, at my local store the players are still playing by mk2 rules where each player has a terrain feature like a forest or hill within 12" of their table edge while the middle of the table is pretty much all open ground. Is this normal for mk 3 or is terrain supposed to be more common now?

Check the steamroller rules for guidelines. Basically nothing should be within 6" of any board edge. Use 6-8 pieces, though I like a little more.

Yeah, there should be a lot more. Its all covered in the steamroller pack.

Yeah, that sounds really low.

http://privateerpress.com/organized-play/steamroller-tournaments

http://imgur.com/e1Rjax1

Well, i think its fine.
Six to eight pieces of sitze 3" to 6" make sense on 4' X 4' boards

Place all of it! Define the entire board as a forest!

(Full disclosure: I play Circle, I'm biased)

With Wurmwood, that can be temporarily mostly true.