Gimmick creates a diversion and Teddy escapes from Tweeg's wagon. The Trio then launch an expedition to the top of Rainbow Falls and discover that the cave the water comes from is full of colored glass that look very much like gems. Wooly slips and gets stuck at the mouth of the cave, causing the water to rise inside, nearly drowning the Trio. Wooly breaks free, and once the Trio escape, the What's-It blocks the water with a boulder, causing the falls to dry up. Gimmick then swindles Tweeg into buying a machine that supposedly turns Rainbow water into gems. Tweeg rushes to the Falls to find it dry, and then buys back all his fake remedy at triple the price, only to find that the machine doesn't work.
Elenco: John Stocker , Will Ryan , Holly Larocque , Les Lye , Phil Baron , Rick Jones , Anna McCormick , John Koensgen , Doug Stratton , Pier Kohl , Robert Bockstael .