The waterfall is where the water from the river falls from the northern cliff. In Animal Crossing and City Folk, it is possible for there to be another waterfall elsewhere in the player's town. It will appear when the the river meets the cliff in the center of town. The north waterfall is accompanied by the waterfall pond. Fish cannot be caught in the waterfall itself, but the waterfall pond is the only place where char and large char can be caught. In Wild World, there is sometimes a small rock in the center of the waterfall. It does not serve any purpose and is only there for decoration.
In New Leaf, there are two waterfalls: one where the river flows into town, and one where the river flows into the ocean. There can also be waterfalls on the east and west sides of town, if the river flows horizontally.
The waterfall pond is the lake around the highest waterfall. It is larger than the straight stretch of river, and the size and shape differs from town to town. Pondskaters can be found here, but only in City Folk and New Leaf.
In New Leaf
Players often find these fish difficult to catch because of their infrequent spawn, and small area in which to catch them. However, there exists a method to cause fish to spawn in the waterfall pool much more quickly than would otherwise happen. The method consists of standing by the waterfall pool, then running to the far end of the beach, as far as possible, then running back again. If there is no fish in the pool, running again gives another chance to spawn them. If there is a fish, it can be easily caught by heading up the ramp to above the waterfall, where the rod bobber can be thrown down into the pool.