A Step-by-Step Guide on How To Install a Pool Light & Niche Pool lighting is essential for both enhancing the beauty and safety of your swimming area. Whether you’re aiming to create a welcoming ambiance or improve visibility for night swims, proper installation of pool lights allows you to make the most of your pool's functionality and charm. Inground pools often use LED or halogen lights, securely housed within a niche, a fixture built into the pool wall.