Originally Posted by tadpole
The fact that the max. height for the retaining wall will be only 3 feet plus the fact that the remaining perimeter of the pond will be a 1 foot wall, you could use what i call the TUCK method (See diagram). This is definitely leak proof. The problem with this method is the inevitable folds that occur in liner. These folds will affect the alignment of the block, but not so much as will be noticeable especially since you will be applying the stone veneer.
It looks like a good part of your time will be dismantling 'Stone Mountain'.
Those are NOT pictures of any of my projects. I got them off the web to help determine what you were planning.
the guy that used to do my tile was not very anal with his grout work, which left me with 2 leaks at the skimmers. i started using red guard on all my work even these.