Game at a glance
Man of the match: Paul Whyte (Waterford)The wing-forward was in deadly accurate form, be it from open play or dead ball, and top-scored with seven points.
Paul Geraghty's sending off two minutes before the break left London with a massive task, which got even greater when Ciaran McCallion joined him on the line.
Having been one of the great stories of the summer, can London keep their squad together for 2012?
Syl Doyle took his time before dismissing Geraghty, but the Wexford official looked to have no other option in both sendings off.
What they said
Paul Coggins (London manager):
"I've told the lads they can be very proud. We wanted to get into the next round but that's for another time. We'll look forward to next year greatly."
John Owens (Waterford manager):
"We lost three matches (in the league) by two points so it's nice to have some bit of good fortune."
Wides: London (2) 3; Waterford (1) 7
Frees: London (13) 27; Waterford (15) 24
Yellow cards: London 6 (C McCallion 25, P Geraghty 31, M Moloney 36, S Browne 49, S McVeigh 57, S Kelly 67); Waterford 2 (G Hurney 36, T O'Gorman 68)
Red cards: London 2 (P Geraghty 32; C McCallion 47); Waterford 0
Waterford will play Limerick on Saturday in the third round of the qualifiers. London's fairytale season is over.