The waterfall is located right at the top of the Shivtharghal caves.
This is the place where Samarth Ramdas Swami dictated Dasbodh scripture to Kalyanswami. Samarth Ramdas swami lived here for about 22 years. It is believed that this is where the first meeting between Shivaji and Samarth Ramdas swami took place.
More info: http://en.wikipedia.org/wiki/Shivthar_Ghal