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After a short distance, the stream is impounded by a dam that formerly was the electrical power source for the town of Cookeville prior to the advent of the Tennessee Valley Authority . This dam's original purpose was to divert the flow of the water through a powerhouse that was located at the base of the last of a series of three waterfalls, the last and highest of which is Burgess Falls, the focus of a State Natural Area . Burgess Falls is from 60 to 70 feet (20 to 25 m) high and is generally considered to be among the most scenic waterfalls in Middle Tennessee. The reservoir behind the dam is now managed by the ''Tennessee Wildlife Resources Agency''. The area has been minimally developed since its acquisition by the state with walkways, hiking trails, and a paved parking area.

Below Burgess Falls the water of the Falling Water River becomes slack as part of the Center Hill Lake impoundment of the Caney Fork River , a Corps Of Engineers project. The falls mark the descent of the riverbed from the Highland Rim into the Nashville Basin over a particularly resistant layer of Sedimentary Rock from the Paleozoic Era .