At half-time Tipp led 2-8 to 0-11 after goals from Bonnar Maher and John “Bubbles” O'Dwyer who suffered a suspected broken bone in his finger in the first half and went off injured in the second. He was replaced by Shane Bourke.
Waterford came back fighting in the second half and were aided by a strong wind.
A Colin Dunford goal on 51 minutes put Waterford ahead and gave them the advantage heading into the last few minutes.
Paraic Mahony snatched a late winner for the Déise men from a free to give them a one point victory over the Premier County.
Oisin Langan and Ken Hogan were at the game for Tipp FM Sport.
Cork were the first team through to the Division One final in the Allianz Hurling League after a sensational comeback against Dublin this afternoon.
The Munster side came from 12 down at one stage to beat the Dubs by a single point.
Goals from Mark Schutte and Dotsy O'Callaghan helped Dublin into a healthy half-time lead but a second half goal from Paudie O'Sullivan inspired the revival.
The final score at Nowlan Park was Cork 1-27 Dublin 2-23.
