Yes, Lindsey, that is a waterfall. The pump takes water out of the pool, runs it through a filter and a chlorinator,and sends part of it back into a pipe in the center of the jacuzzi. I can control how far it shoots into the air (usually 18 inches or so). Then it cascades down over the rocks back into the pool. It acts like a fountain and waterfall and of course there are air jets all around inside.
Jim