Hi Smidge,
I know you already understand what this dream is all about. You posted the meanings of the symbols already. I suspect that the emotional sins; bitterness, hate, contempt, jealousy, etc, caused this person to be lonely and isolated (symbolized by the toilet). Like all of us, she also brought these negative things over herself. Whenever we get involved in sin and when we act in ways that are sinful, we bring a lot of negative things over ourselves. She made herself spiritually poor as indicated by the rag or wrinkled cloth.
The only way that this person will be set free is to repent and not by prayer only. She will have to be counseled because she needs to repent of those emotional sins. She will have to forgive those people who caused her to hate or to be bitter. When she forgives she will be set free and she will be able to live in peace with people. This will put a whole process of deliverance in motion (domino-affect).
A waterfall speaks of a whole lot of spiritual and financial blessings. The fact that you saw it indicates that she can have all these blessings again. However, she needs to repent and release all the people in her life that caused her to harbor all those sins.
The square rag speaks of revelation knowledge (See 4 or Shapes “square”) and the “white” rag speaks of victory, holiness, righteousness, or purity. As soon as she grasped the reality of this revelation (the symbols in your dream and the meaning of the dream) she will be delivered and she will be victorious and blessed.