When creating large terrain over many areas, it is not always feasible to have a single elevation data source. For flood studies in particular, you could have lidar, ground surveys and perhaps even USGS DEM. All of these can be incorporated into an ESRI terrain, but there is usually overlap. You can using geoprocessing to eliminate the overlaps (erase, clip, etc.), but this can be time consuming and difficult (especially with lidar multipoints).
Is there any way in within the ESRI terrain to eliminate the overlaps by perhaps prioritizing features within the dataset. A water resources example: Build terrain in the channel based on survey mass points (this would either be defined by the data extent or a user defined extent mask), build terrain outside that area using the lidar mass points (maybe the floodplain extent), then use the USGS DEM for the terrain outside of the first two for the remainder of the watershed. I havent found any prioritization or extent options in ESRI terrain. Is it available or are there any easy workflows that could accomplish the same goals?