um... Yeah this is probably possible! I'd be scared to make and test it though, because one waterfall would mess things up right?
And isn't it possible to make this plugin to be Spout (and of course SMP) compatible? ^^ http://www.minecraftforum.net/topic/259303-181-finiteliquid-v52-finally-update-again/
This used to be a feature in WorldGuard, although it was removed. You might be able to go back and borrow the source if you want to add it back in. (Although it may never have been ported from hMod to Bukkit, so then again it may be no help at all )
http://dev.bukkit.org/server-mods/fluidflow/pages/classic-fluids/ Install the ClassicBase and then the plugin (water or lava) that you need.
Actually I want to ask that anybody can update the FiniteLiquid mod to Spout? This would contain all the features that we are talking about and even more [Edit: The important is just to disable the infinite water pools. No more 2x2 infinite water pool!] Or should I post another request for this?
works just fine tested it just now), you also need the FluidFlow plugin as that is what controls the fluids in general so for classic fluids: FluidFlow - Base Plugin for fluid control ClassicBase - the base plugin to reduce amount of code written ClassicWater - for classic water ClassicLava - for classic lava