Whilst I'm here, I should add something I missed in the .tgd description above.
*** When using water shaders on objects(like the plane here for the waterfall), uncheck 'casts shadows' in the object. You don't want the solid shadow of the water object's surface being cast onto the underlying terrain.
The default 'Lake' object does not have 'cast shadows' checked, anyway, if you'd rather use that, I rarely do. ***