Water analogies do have their problems. They don't handle AC too well for one thing.
There is only so much current coming from the pickup and this current contains many different frequencies. Regardless of frequency, the total current produced by the pickup from one wire is trying to find the easiest way back to the pickup - to enter in the other wire.
Remember that current flow will only occur when there is a complete path.
When it hits that split between volume and tone control, some of the current will go one way and some of it goes another. The tone control capacitor helps decide what goes where because it is frequency selective and presents an easier path for the higher frequency current and a more difficult path for the lower frequency current. The tone control resistor acts with the capacitor to determine how easy or difficult this path actually is...
In general, some of the higher frequencies will find an easier path by going through the tone network and once through that, they can zip right back to the pickup. They have been "short circuited".
As the frequencies get lower, the tone network path becomes more difficult. These go through the volume control, make it to gorung and then zip right back to the pickup.
The volume control provides another choice of paths - the wiper that moves and determines what portion of resistance exists between both sides of the volume control. Some of the current takes the path through the volume control and back to the pickup and some of the current takes the path through the volume control wiper, down the center conductor of the guitar cable and into the amp.
Once inside the amp, depending upon the amp, there may be other splits of current - but in the end, all of the current that traveled to the amp via the cable eventually meet up with one another and travel back through the cable... and eventually back to the pickup.
Since this is AC, reverse the flow and the exact same thing happens, just in reverse.