Yes, that is how it works. Another way to think about the flow is that the house line being pressured by the pump (country fill) or city pressure feeds all of the water outlets such as the sinks, toilet, shower, and also the fill valve (position 1) to the fresh water tank. So when you turn the valve to "1" position then you are opening the house line to the tank.
Check out this thread, and pull down the document in comment #14
~CA
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2010 GreyHawk 31SS
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