It's pretty impressive, but it's still hard to tell if it's really real.

Yeah, it's hard to tell - but I sort of wish this was true...

About the hoses - as long as the "water" hose (ie the one going down to the brakes) has its end/opening down by the bottom of the tank, forcing air into the tank will make water go out. Doing it that way instead of connecting it to the bottom of the tank also removes the need for a valve on the "water" hose - gravity takes the job of keeping it in the tank until applied air pressure pushes it out.

Same principle (but here it's the headroom gas pressure instead of outside applied pressure that does the job) is in work in CO2 bottles used to fill smaller CO2 bottles (for instance for paintball) with liquid CO2 - the "water" hose is then called a dip tube (attached to the outlet and has its end a couple of centimetres above the bottom of the tube).

/Michael