You get waterfall from Jasmine at the ege of sunny shore city near the ocean
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you beat the last gym leader in johnto
you must go to the uppermost middle and press a to the lever so the waterfall will be gone and you can battle the gym leader!!!
after beating the 8th gym leader go to the beach and the lady will give you the HM 7 waterfall
u go to the top of the gym and turn off the waterfall and challenge him.
After beating the last gym leader go to the north side of sunyshore and a girl will be there and after talking to her you get waterfall