Disclosed herein is a pool light assembly including cooling for the illuminating structure. The assembly includes a water inlet housing having a portion on the dry side and a portion immersed in the pool water. An assembly having sealing structure creates a leak proof connection with the pool wall. The submerged portion of the assembly includes a base. The base has an exterior exposed to the pool water and an enclosed interior including the illuminating structure. A notch is provided in the exterior of the base and extends into the interior for allowing pool water in the proximity of the illuminating structure. The assembly includes sealing structure for preventing water from entering electrically active elements, while allowing pool water to act as a cooling element. A retaining member locks and encourages waterproof sealing of the electrically active elements. Each of the elements is provided with structure as necessary to facilitate the free flow of water through the housing.
