Another Fluid Sim Domain not behaving.

I am trying to model a landscape with a lake on top of a hill and the overflow forming a river flowing downhill. I got it working after a fashion but the gap between the obstacle (a mesh) and the fluid was too big. I tried scaling it up but then the domain just stayed a box shape. I read that I should unify the scales of the objects to one by Ctrl + A but that did not help.
I am new to Blender’s Particle Physics and am probably doing something stupid.
The materials are just placeholders as I will be using the PovRay exporter for them.
I attach the blend file, zipped.
Any help or hints will be much appreciated. (191 KB)

Edit: I have (not in the attached file) set the resolution to 500 without any effect.

Regards Stephen

No takers?
Never mind I redid the scene and it worked. It would have been nice to know what I did wrong.