Here is what I had posted in response to this question in the past. I would recommend against it.
viewtopic.php?f=6&t=33183When I unexpectedly got my 1.5" RES a month ago, I had not really done research. A neighbor across the street has a 90 gallon and a 60 gallon hex freshwater aquarium. He's had it for at least 10 years. I knew he had strong views on area pet stores and asked him of advice.
When I explained at the pet store what I was looking for, they pointed me at a.TetraFauna 20 gallon kit that included the waterfall filter.
I had a bare tank. I also got a head start on cycling the tank because my friend gave me 5 gallons from his 90 gallon tank and an old filter I left in the tank for a week.
I had no ammonia spike, and the nitrites only spiked to the first level on the chart before disappearing.
I had the waterfall in place about 3 weeks before upgrading to a canister that is too big for my 20 gallon tank, with the thought that I would already have the filter for a bigger tank.
So, it was able to keep the nitrogen cycle going with a small turtle. The things I did not like about it was that even if you stirred up the waste on the bottom, it would not suck up much. It took up quite a bit of real estate in my small tank.
The "waterfall" is hollow. There's a small pump inside that pushes the water up to roll down the outside. There are a number of small holes that pull water in and through 2 filters that are activated carbon enclosed in a fibrous envelope. The outside envelope is where the bacteria breed, and when I pulled mine out, it was clear there were colonies on it.
However, this design means that there is a minimum and maximum water level. In my 20gallon tank that max was between 1/2 and 2/3 full.
I ultimately got rid of it because of the space it took up, the max water level being so low, and concerns that it could not keep up with the increased waste load as my turtle grew but before I moved to a new tank.
In a 40 gallon tank, it won't take up as much space. I would be concerned about the waste load. If it was not the only filter though, it should be fine, if the water level is ok.
I'm in NW Indiana. I'd be glad to give mine away along with extra filter cartridges.