Complex sentence: There is a small dam which generates power from "Butedale Lake" immediately behind the town and a spectacular waterfall flows out of this lake into the ocean immediately to the right of the wharves.
Split into simpler sentences: There is a small dam which generates power from "Butedale Lake" immediately behind the town. Impressive Butedale Falls flows out of the lake into the ocean immediately to the right of the wharves.