The teams were level nine times over the hour, but the Bridesiders outscored their neighbours by six points to one in the final quarter.
Thomas Ryan fired 10 points with Waterford minor Jordan Henley also hugely influential.
The sides were tied on five occasions in the opening half as they departed at 1-7 each.
On 10 minutes, William Henley’s dipping point attempt slipped through the fingers of Brendan Hannon and into the roof of the net.
The Reds responded straight away.
Mikey Kearney was fouled for a penalty and the Waterford panellist delivered a well-placed drive to the bottom corner.
A tremendous individual effort by Thomas Ryan sent Tallow two points up.
He soloed from inside his own half and struck over in fine style off the hurley.
Mikey and Jamie Kearney swiftly levelled for Ballyduff.
The 2007 champions raced three points clear on the restart courtesy of Mikey Kearney, Andrew Casey, and Stephen Molumphy.
Tallow reacted with a timely goal after some 36 minutes.
Brendan Hannon batted away Bob McCarthy’s shot but Evan Sheehan pulled home the rebound. It was nip and tuck throughout the third quarter.
The last five points belonged to Tallow however.
With six minutes left, Jordan Henley banged over a rousing point from the left wing after subs James Murray and Jake Beecher combined.
Cian Leamy received a red card for Ballyduff in the closing stages for a high challenge.
T Ryan 0-10 (8fs); W Henley 1-1; E Sheehan 1-0; P O’Brien 0-2; R O’Sullivan (65), J Henley 0-1 each.
Mikey Kearney 1-6 (6fs, 1-0 pen); A Casey, K Casey 0-2 each; J Kearney, S Molumphy, E Scanlon 0-1 each.
S O’Sullivan; M O’Brien, D O’Brien, K Kearney; A Kearney, J Henley, R O’Sullivan; K Geary, P O’Brien; E Sheehan, Bob McCarthy, S Feeney; T Ryan, P Kearney, W Henley.
J Beecher for P Kearney (21); R Grey for Henley (49); R Beecher for Feeney (52); J Murray for Geary (52); Brian McCarthy for Bob McCarthy (56),
B Hannon; Shane Hannon, T Molumphy, J Hannon; Michael Kearney, S Kearney, C Horgan; J Kearney, Seamus Hannon; E Scanlon, S Molumphy, Mikey Kearney; K Casey, T Feeney, A Casey.
C Leamy for Feeney (41); B Kearney for Scanlon (55); D McDonagh for Horgan (62).