This was fully created within Lightwave 9.0. The shading is created using distant lights and simple surfaces (no cel-shading). The lines are drawn in using Lightwave’s edges. The background is a gradient for the sky and the buildings are masked out using an image I created. The entire background is actually a giant dome surrounding the scene and the sea is a slightly curved plane. This helps give the illusion of a smooth horizon.
: Lightwave 9.0