Create a Terrain. Then click on the E next to the terrain to Edit it.

Click New. This makes the current picture dissappear so you can make a new picture. Make sure your Opacity is all the way up and it is easier if you use a larger brush- these are on the left hand side. To change these, you click and pull right or left. Now you will draw a rounded square. You will want to bring your bottom bracket up until you see red around your picture. If your bracket is not showing, click on the little picture next to the arrow that is on the upper right part of the drawing area.

It should now look like this.

At this time you can add a Material. Click the little arrow next to Edit. From there you can pick your material.

Here is the material applied.

Now go up to Edit and click on Duplicate.

Now you will be creating the water. Click on the E next to the duplicated terrain to Edit. Slide your opacity dot all the way down (this is to the left) and start to erase an area. Make sure to only erase on the "sides" of the water and not in "front". I chose this side because it already had a natural curve there.

Apply a water Material by clicking on the little arrow next to Edit.

Now you will Move this "water" up a bit by clicking and pulling the 4th Edit Icon on the top arrow (see picture). You will only pull it a tiny bit to the right so it is just high enough to see. You can view it in the preview window in the upper left hand of your screen.

It should look something like this now.

At this point, I wanted to view it closer. I moved my trackball around and used the views above it also. I wanted to move the water forward a bit so I clicked and pulled the southwest arrow of the 4th edit icon (see picture)

I render often to see what it looks like.

I wanted to fix the opacity of the water so I clicked on the M next to the water wireframe. I brought the transparency down some.

You now have a waterfall. You can do more with it though at this point. To make mist you create a sphere.

I used my trackball for different angles and moved the sphere to where I wanted it- right in front of the waterfall.

You can resize it and flatten it. I flattened it some by clicking and pulling to the left on the 2nd edit icon on the top little box- see picture.

Apply a material to this by clicking on the little arrow next to Edit. I used a volume. I picked "cotton ball".

It will look something like this now.

You will want to bring the density down. Click on the M next to the sphere wireframe and lower the number in 'density'.

It should look something like this.

Click on your ground plane or click on the lower small icon to pick your ground plane from there to select it. Click on the small arrow next to Edit to apply a water material to it.

It should now look something like this.

You will want to either zoom in on the waterfall by using your trackball or add some background terrains.

I added a few rocks and a tree but to be honest with you, I like the "mist" better if done in a paint program so I hid my sphere--to do this click the A next to your wireframe and click on "hidden".

I saved the image a as JPEG and pulled it into Paint Shop Pro 7. I added a new layer and used my airbrush to put a "fog" like mist first. I blurred that layer and added another layer and airbrushed white in again and blurred that layer a little less than before. Then I added another layer and airbrushed some more white dots in and left this layer like it was. I like this mist effect better than using a sphere in Bryce.