No,not necessarily. There are many atmospheric phenomena that will produce colours in the sky apart from rainbows and it doesn't have to be raining near you for a rainbow to form, but there has to be rain to form such rainbows. A rainbow will only form in front of you when the sun is directly behind you. If you can see the colours near the sun, then you are not looking at a rainbow. But all it requires is suspended water droplets(spheres).
The splashing of water at the base of a waterfall caused a mist of water in the air that often results in the formation of rainbows. A backyard water sprinkler is another common source of a rainbow. Bright sunlight, suspended droplets of water and the proper angle of sighting are the three necessary components for viewing one of nature's most splendid masterpieces.
To view a rainbow, your back must be to the sun as you look at an approximately 40 degree angle above the ground into a region of the atmosphere with suspended droplets of water or even a light mist. Each individual droplet of water acts as a tiny prism that both disperses the light and reflects it back to your eye. As you sight into the sky, wavelengths of light associated with a specific color arrive at your eye from the collection of droplets. The net effect of the vast array of droplets is that a circular arc of ROYGBIV is seen across the sky. “Internal Reflection” “Angle Of Deviation”
“Formation of Rainbow”
The circle (or half-circle) results because there are a collection of suspended droplets in the atmosphere that are capable concentrating the dispersed light at angles of deviation of 40-42 degrees relative to the original path of light from the sun. These droplets actually form a circular arc, with each droplet within the arc dispersing light and reflecting it back towards the observer. Every droplet within...