The weekend we were in Providence happened to be one of the weekends when WaterFire occurred. We walked around downtown early on Saturday and saw people blocking off streets and getting things set up, including the water fire spots. We didn't eat from any of the vendors or restaurants as we had other plans for dinner and then came back into downtown for our scheduled gondola ride. One thing to note is that parking can be kind of difficult to find and if you are not familiar with the crazy streets in Providence (narrow streets, short blocks, easy to miss the street signs, etc.), then finding parking when it is dark can be challenging, so plan ahead accordingly. It was fun walking along the pathway/riverwalk. It was fun to watch the boats come back and restock the firewood.
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