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This siphon effect relies on atmospheric pressure to allow the pressure and pressure potential energy to drop as the water travels upward inside the sealed pipe. But eventually the pressure of the rising water reaches zero and no further reductions in pressure and pressure potential energy are possible.
The water flows down a decline into a porous substance such a rock, sand or gravel. Surrounding the porous substance is rock or other material so hard that the water can not escape through it to reach ground level. This combined with the flow of water creates pressure that is only released when in finds it escape.