The centerpiece of Falling Waters is a uniqu disappearing waterfall and several sinkhole entrances leading into limestone caverns. Duke Horne, a pioneer and resident of Orange Hill, harnessed the waters of the waterfall to power the gristmill for grinding corn in the era a few years before and after the Civil War. Another early industry at this site was a whiskey distillery owned by B.W. Berry. The distillery furnished the hard spirits for Berry's Wine Shop established in 1881 to meet the demands of the frontier railway construction site that was to become Chipley. The wine shop was the new town's first business enterprise.
Falling Waters was also the first site for oil drilling in the state of Florida in 1919. Drillers hit a depth of 4,000 feet and false rumors of a gusher spread thorugh the town. The drilling effort ended in disappointment when drillers were unable to recover oil in commercial quantities and it was finally cappped in 1921.