So I rolled back my OC repo to a point where it worked and played around with the rock bottom scenario. I cut out all the stuff not related to the waterfall and changed the map around so the water source was in a cleft on the one side and overflowed it. The waterfall code also has a water drain where... water drains. The drain object doesn't seem to work. This may be because I have no clue how to relate the x,y location to the map.bmp file.

The waterfall object code does everything I was thinking of. It also has direction parameters. The changes that I think need made are as follows:
- rename the WaterFall object to WaterSource
- add a graphic that looks like a hole out of which the water flows and allow scenario editors to toggle it on or off with a parameter at creation
- Increase waters viscosity or something; the flow of water seems far to broken and needs to be smoother; I'm not sure if this is scriptable or hard coded into the engine. anyone know? (@Pyrit is this what you meant about it looking ugly?)
- create a script for water to drain into dirt and dirt backgrounds.

Edit: The decorative waterfall should probably be a separate object possibly a modification of the current waterfall.

I'll attach the scenario If I can figure out how and if my internet isn't to slow to upload it. Uploaded.

Edit: BTW, the scenario doesn't change the waterfall object yet; it's just a map configuration that I'll use to test my modifications.

It's basically the same code and setup of the author of rock bottom so all credit goes to him. And I guess I am now suppose to say that the license is CC-By.