A: A waterspout, explains UW-Madison atmospheric scientist Steve Ackerman, is a rotating funnel that extends from the bottom of a cumulus cloud to a body of water. Curiously, most of the water in the funnel isn?t sucked up from the lake or ocean, but forms primarily from water vapor in the air condensing into droplets. Waterspouts occur where large bodies of water experience frequent thunderstorms. They happen frequently in places like the Gulf of Mexico and the Chesapeake Bay. Although less common in the Great Lakes, they do occur from time to time.