Biome Backgrounds?

Looking a little further, it seems they do indeed duplicate the entire sprite for the animated waterfalls. Also, as can be seen in the files above, unlike other Terraria art they don't use 2x2 pixels.
 
Terraria Backgrounds are made up of many smaller (and a big sprite or two) all put together. It runs layers and what not. Unfortunately, you'll need to make more than one sprite).
 
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