Under Displacement set the Strength to 25 units. As you can see nothing changes and that is because our plane needs to have more segments for added flexibility.
Go back to the Plane layer and change both Length Segs and Width Segs to 32. You can now notice that the added geometry resulted in a really nice landscape defined via the png file we created in Photoshop.
Now go ahead and play with these two marvellous pieces of software to get nicer results. You can also use this heightmap file to obtain the landscape at step 1.
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