The amount of fluid falling onto the wheel is far too great to come from the initial pitcher while also filling the entire contraption. I believe this is a careful manipulation of angles and some skull duggery.
This is achieved with a film trick known as forced perspective. You notice he makes sure never to touch it walk behind it or come to close to certain parts. Its a trick of the eye brought to life by a pump a good construction and camera work. Notice there in never anything in the background to give the thing scale.
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