The trio was against their rendition of the 1995 tune being marketed as a single, but they were overruled by executives at their record label and it went on sale in November (12).
However, the song is not included on the tracklisting of their upcoming self-titled debut album, and singer Karis Anderson reveals the girl band think of new song Slip as their comeback single.
She tells Britain's Daily Star newspaper, "We are pretending Waterfalls didn't happen, that song was never our decision.
"Slip now feels like a comeback, even though we've only been around for a year. Waterfalls is not going on the album. We love the Tlc version, but we didn't like it as a single for us.
"It was down to us that our album didn't come out months ago. It was ready to go, but we was (sic) listening to it and realised the label had changed a few mixes, a few structures and even taken off a few songs. We made this album before we got signed so it was important for us to still have control."