The developers have done a great job to make sure that there are no more floating waterfalls at the edge of cliffs, but using raise-land too close to a waterfall on an ocean tile can create a floating waterfall... see below

Before...

 And now after

The fix that I made tries to keep with the spirit of what the developers designed as the waterfall and prevents the floating waterfall problem...

and after

For those that are interested, here is a link to the .xml file. You are going to replace the other file so I recommend that you make a backup.

https://dl.dropbox.com/u/75549875/Fallen%20Enchantress/Waterfall/River_CliffEnd.xml

put this file in \fallenenchantress\data\English\Core Tiles\Rivers

make a backup of River_CliffEnd.xml if you would like to go back to the original waterfall. this has no other game effect besides visual.

Note: You may need to run the game in administrator mode once for the effect to take place.

Edit: I have an updated version of the waterfall that looks closer to the intended picture the developers had of the waterfall when it is down. Here is the updated version below:

https://dl.dropbox.com/u/75549875/Fallen%20Enchantress/Waterfall/version2/River_CliffEnd.xml

Let me know which one you prefer.