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From The Collaborative International Dictionary of English v.0.48:
Water gall \Wa"ter gall`\ 1. A cavity made in the earth by a torrent of water; a washout. [1913 Webster] 2. A watery appearance in the sky, accompanying the rainbow; a secondary or broken rainbow. [1913 Webster] These water galls, in her dim element, Foretell new storms to those already spent. --Shak. [1913 Webster] False good news are [is] always produced by true good, like the water gall by the rainbow. --Walpole. [1913 Webster]