The Chocolate Room is the first room shown in Willy Wonka's factory. The whole room is made to resemble a meadow, except made entirely out of candy. The centerpiece of the room is the Chocolate Waterfall, which is incredibly important to the making of any chocolate candies in the factory.
Willy Wonka shows the tour group the Chocolate Waterfall, and explains how it mixes his chocolate so it's light and frothy. He also says that the fall is unique to his factory and that no other chocolate factory in the world has a chocolate waterfall. Augustus Gloop ends up falling into the river that stems from the falls, and is sucked up into a Chocolate Extraction Pipe, thus taken to the Fudge Room.