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I'm not too familiar Blatter's book, but I wouldn't call it the book on orchestration, at least not in terms of popularity with musicians and theorists.
There are certainly other well-respected books on the subject out there - Piston's Orchestration, Berlioz' Treatise on Orchestration (later updated and amended by Richard Strauss) and Rimsky-Korsakov's Principles of Orchestration spring to mind, at least of the texts I'm familiar with. I'd probably recommend the Rimsky-Korsakov, which focuses on instrument combinations, balancing orchestral choirs and so on, while the other two deal more with the properties of individual instruments (also, the RK is available free of charge as an online course, including audio samples, on these very forums). That said, check all of them out if you get the chance.
I've also heard good things about Samuel Adler's The Study of Orchestration, but I can't really comment because I haven't read it myself.
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