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A lazily wandering or gently cascading garden stream is a small river that wanders through your yard. Many streams incorporate a modest waterfall and a small pool at the bottom, though they don’t have to.
Water will need to circulate through the stream while the pump is operating, and the stream should hold some water when the pump is not running. That means that the stream should be nearly level; an average drop of only 1 to 2 inches per 10 feet is ideal.
In most cases, you will need a small holding pool at the lower end of the stream. (You could instead install an underground holding tank, but that is a good deal of trouble and expense.) As with a waterfall, the pump sits in the bottom of the pool and sends water, through buried or hidden tubing, to the top of the stream.
Typically, a stream is pretty shallow-- anywhere from 3 to 10 inches deep. The narrower and shallower the stream, the faster the water will move. For a natural look, have your stream meander around a bit; for a formal setting, install a straight stream that looks like a man-made canal.
Excavate for the stream, checking at all points to be sure it is gently sloped. Purchase a flexible liner and cut it 3 to 4 feet wider than the stream. Because the water is so shallow, you will need enough flat stones or gravel to cover the liner at all points.