Falling Water Cove is located on beautiful Lake Malone with its clear water, sandstone bluffs and forested watershed.The lake is managed by Kentucky's Department of Fish and Wildlife and is renowned for its fishing. The lake level does not fluctuate wildly from season to season as happens on most larger lakes.

Falling Water Cove is in the headwaters of the lake in an area restricted from water skiing, though that area can be reached by paddling or motoring east for three miles.

Canoeing and kayaking are becoming more popular but the more common craft are pontoon boats and small fishing boats.

Animals commonly sighted in Falling Water Cove are deer, turkey, beaver, geese, ducks, herons, kingfishers, and even coyotes.

Lake Malone State Park is a forested lakefront reserve about three miles from Falling Water Cove and has several amenities including a boat ramp, camping, swimming beach and boat rental.