Not necessarily a pipe but a object that spouts out water. I realize there's the Alpha Threshold that creates an awesome effect but is it possible to create water that's more realistic?
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It's possible, but would be hard to look right. If you were to it do it scratch in your own engine you would probably use an advanced particle system to be efficient. However, you can't do that very easily in C2 unless there is a third party plugin I don't know about or you make your own.
The method that comes to mind though is using lots of physics objects. This guy shows a rough example -> https://www.scirra.com/forum/fluid-water-simulation-example_t69770