The song describes the water cycle through the processes of evaporation, condensation, and precipitation. Evaporation occurs when heat from the sun warms groundwater, turning it into water vapor. Condensation then takes place as the water vapor cools and changes into liquid clouds. Finally, precipitation happens when water drops in the clouds get large enough to fall from the sky as rain, snow, sleet, or hail, completing the cycle to begin evaporating again.