Yea I reckon it would be allot more complex than that even. When the water falls, the PE turns to KE, SOME of which may be transfered to TE through friction when it smashes into the bottom of the fall. I reckon that during the fall though you will loose more water than usual due to vapour and evaporation, which causes cooling. Therefore at a guess - you wouldn't see much in the way of temperature change at all between the top and the bottom of the falls. ??
However, if this is a question from a text book then there must be some increase. I suppose it wants you to ignore the increased evapouration.