According to this (very good) question, if it's true or false, we have to see the Psalm 148:4:
4 Praise Him, ye heavens of heavens, and ye waters that be above the
heavens. (KJV)
or in Hebrew:
הַֽ֭לְלוּהוּ שְׁמֵ֣י הַשָּׁמָ֑יִם וְ֝הַמַּ֗יִם אֲשֶׁ֤ר ׀ מֵעַ֬ל
הַשָּׁמָֽיִם׃
We can see that the word "waters" is referring to the above waters, since in the previous parte, this is, Praise Him, ye heavens of heavens we can start to imagine if this doesn't refer to what comes next, which is waters that be above the heavens, and this is false, because there is the connective "and" separating both sentences. Now, we could argue that הַֽ֭לְלוּהוּ which ends with וּ which is referring to G'd (Him), for in Hebrew, he, is הוא, refers to Praise Him, and there is a command for the "waters above heavens" and "heavens of heavens" to praise Him, and this is true. However, what would it be "waters above heavens"? We have to go a bit deeper, since King David was jewish; it's known in judaism that water refers to soul, then in this case, this would mean that all the people are referred to waters. However, the verse states waters above the heavens which is the people above the heavens, well, this is not hard, for it seems there is a wall that separates the souls that will be saved from those that will not, as in Isaiah 12:3:
3 Therefore with joy shall ye draw water out of the wells of
salvation. (KJV)
or even in Isaiah 43:2:
When you pass through the waters, I will be with you; and through
the rivers, they shall not overwhelm you; when you walk through fire
you shall not be burned, and the flame shall not consume you.
Now, we go a bit deeper when appears a distinction between waters and living waters, this last one referring to the G'd He Himself as in Zechariah 14:8:
On that day living waters shall flow out from Jerusalem, half of them
to the eastern sea and half of them to the western sea. It shall
continue in summer as in winter. (ESV)
In this passage, Zechariah refers to the souls of the ones that were saved, but it's not just he that points this out, also this can be seen in Jeremiah 17:13 that explicitly clears this matter:
O Lord, the hope of Israel, all who forsake you shall be put to shame;
those who turn away from you shall be written in the earth, for they
have forsaken the Lord, the fountain of living water.
So, indeed G'd is the fountain of living water. But the son of King David, Solomon also explains the same, in Song of Solomon 4:15:
A garden fountain, a well of living water, and flowing streams from
Lebanon.
So as the souls that are saved go, according to judaism, to a state which is as if they were in the big state, that is, of G'd, and the heavens of heavens or heavens inside heavens is known in jewish philosophy as Zeir Anpin or the Messiah (for many, Jesus Christ) which is the state of being the Creator, but G'd is the only One.
The other answer, which is simpler, according to astronomy, which is that simply that the waters above is just the rain, which is true, according to birds being able to fly over the face of the water in Genesis 1:20:
20 And God said, Let the waters bring forth abundantly the moving
creature that hath life, and fowl that may fly above the earth in the
open firmament of heaven.
obs.: the translation misleads, since in Hebrew, the use of עַל means above in general, it's not the preposition in which is present below. So in the above sentence, it should be in place of in, the preposition over, i.e., עַל.
וַיֹּ֣אמֶר אֱלֹהִ֔ים יִשְׁרְצ֣וּ הַמַּ֔יִם שֶׁ֖רֶץ נֶ֣פֶשׁ חַיָּ֑ה
וְעוֹף֙ יְעוֹפֵ֣ף עַל־הָאָ֔רֶץ עַל־פְּנֵ֖י רְקִ֥יעַ הַשָּׁמָֽיִם׃
What it has to be clear in here is that main meaning is in terms of the godly aspect of Salvation, not about the waters being above or not, so the question is neither false nor true, because it's about another question. In jewish philosophy, even though, I quoted the above, there are other verses that differentiate, this happens because there are many layers in matter of worlds and how they join with sefirot emanations.
