Yes, river waterfalls were and are still used to move turbines which form the mechanical basis for generators which create electricity from the motion of falling water, or hydroelectricity. For example, Niagara Falls has a hydro-electric power plant at the base of one of the falls which produced energy for the local area. To understand more about how exactly waterfalls help produce electricuty, visit the second sourced site. It is very easy to read and very informative.
Yes, we do harness the power of large waterfalls for electricity. As mentioned above, the Niagara Falls power plant is one of the more well known waterfall sources for energy. Depending on on their construction, some dams are made as artificial waterfalls, forcing the water to flow in a certain way to turn the turbines, and then make electricity. This is the main purpose behind dams, other than granting more dry land on the other side and controlling the flow of water in a certain area. Waterfalls provide a fuel-free method of generating electricity, and is why rivers and flowing water have been used to power mills and such in the old days.
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