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TL;DR: Waterway to the Falls is an underground area in Snezhnaya, reached through the same cave that opens during "Awake and Sing, Ye Sleepers in the Dust" - the third subquest of "The Crystal City in the Gorge's Depths" (the first main quest of the Novokitezhgrad subregion). It connects to Crystal-Tree Grotto, and its exit path holds 14 Kristallfold mushrooms you sweep during "Let Not All Rivers Run Dry".

How to get there

  1. 1
    Start the subregion's main quest

    Progress "The Crystal City in the Gorge's Depths" - the first main quest line of the Novokitezhgrad area west of Snezhnaya.

  2. 2
    Reach "Awake and Sing, Ye Sleepers in the Dust"

    The third subquest leads you to the cave entrance - both Waterway to the Falls and Crystal-Tree Grotto open up from inside it.

  3. 3
    Follow the grotto through

    The Waterway sits on the exit path out of Crystal-Tree Grotto - you naturally pass through it during the "Let Not All Rivers Run Dry" world quest.

Don't force it early: this area is quest-gated - there's no shortcut in before the quest chain opens the cave. If a guide's map shows the spot but you can't get underground, the quest step is what's missing.

What's there

ContentDetail
Kristallfold14 of the crystal mushrooms line the exit path - part of Mitya's ascension material route. See the Kristallfold farming guide.
Crystal-Tree GrottoThe connected underground chamber the Waterway exits from - same cave system, same unlock chain.
Let Not All Rivers Run DryThe world quest that runs you through the area - the mushroom trail doubles as its exit route.
Downtown NovokitezhgradThe larger underground district the cave system belongs to - most of the area's collectibles and the Kristallfold shop are up there.

FAQ

Where is Waterway to the Falls in Genshin Impact?

Underground beneath Novokitezhgrad, west of Snezhnaya - inside the cave system unlocked by the "Awake and Sing, Ye Sleepers in the Dust" subquest.

How do I unlock Waterway to the Falls?

Play through "The Crystal City in the Gorge's Depths" main quest to its third subquest - the cave entrance opens as part of that story step.

What is the Waterway to the Falls used for?

Mostly farming right now - 14 Kristallfold line its path, so it's a stop on every Mitya ascension route through Crystal-Tree Grotto.

Is it the same as Crystal-Tree Grotto?

They're connected parts of one underground cave system - the Waterway is the exit path out of the grotto, not a separate zone you reach independently.