Etne municipality has several stretches of river that flow into Rullestadvatnet. Kverhuselva, together with Bordalen and Skromme power stations, form what are known as the Rullestad power stations.
The terrain at Kvernhuselva power station is varied, with a pine forest on the west side of the river and a deciduous forest on the east side. Approximately 200 meters from the waterfall, the surroundings are characterized by steep rock walls.
