Pool Lights are purely cosmetic and are not required in keeping a pool functional. Not every pool can have lights installed. The decision of whether you want to have lights takes place when the pool is built. This is because fittings for your cable and wall mounted will be very expensive to add after the base and surface is complete.

This system consists of three parts: a transformer, the cable and of course, the light.
The transformer is the brains of the unit that controls when it turns on and what colour the light emits. It changes AC (alternating current) into DC (direct current). Nowadays, a large majority of light transformers are plug-in as opposed to the older hardwired variation. Legally, you must hold an electrical license in order to do any work with the hardwired transformers.
The cable is embedded in the concrete and sends the signal from the transformer to the light.
The light is mounted on the surface, and most brands will typically have a model that will retro fit onto any bracket. It can come in a variety of colours, including a multicoloured variation.
Below is a diagram of a popular and reliable brand for lighting (Aqua-Quip).
