Almost everywhere in the water. I found mine in the sea around seafoam islands. However, if you want yours to be stronger, catch a tentacool and evolve it.
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Most water Pokemon will learn waterfall i believe. For certain if you have PIPLUP, TENATACOOL, or TENTACRUEL, it will learn Waterfall. Hope I Helped!
Tentacruel doesn't evolve, it is the final form of that pokemon. If you mean what level does Tentacool evole it is level 30.
In my opinion, Empoleon is better.
Tentacool evolves on Lvl. 30 into Tentacruel.
Tentacool evolves at level 30 into Tentacruel.30