How do I achieve a island like this? Where it has a perfect island shape and separation between grass, sand and water?
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Theres 2 ways I think either of them apply here, the Island could be a mesh and they use a single texture for the entire island, grass & sand, or they separate the grass and sand, texturing them respectively
I forgot to reply to the water part, which could just be a plane with a water texture on it. For waves one might just tween the position of the plane up and down.
Can you tell if it’s Terrain or Parts? It’s tough from the image.
You can fill large squarish areas using the Terrain Editor > Edit > Select > Fill tools to make the Sand.
You can select an area of Sand using the Select tool and then use the Paint tool with the Replace checkbox filled to replace Sand with Grass.