The figures were sculpted in Italian marble and were put into place in 1961. Some say that they were an anonymous gift, while others contend that they know who donated them. Regardless, the figures were all the same height, presenting a problem when they were to be installed in Disneyland. Since Snow White's statue was roughly the same size as the dwarves, a visual effect called "forced perspective" was used. Major elements of the scene were scaled and angled to give the illusion of distance and height. When you view the scene from the wishing well, you "see" Snow White in perfect princess height way up on the crest of the waterfall.
John Hench was responsible for the design of the area. His artwork for the Grotto was exhibited in the inaugural Disney Gallery exhibit.
Interesting. The guide told us about the problem with the size and how they used forced perspective to fix it