The 29-year-old arrived at Vicarage Road from Wigan Athletic in January, when he agreed a contract until the end of the season.
However, having impressed manager Slavisa Jokanovic during his short stint with the Hornets, Watson has now committed himself to the club until 2017, with the option of a further 12 months.
To date, Watson has made eight starts and one appearance as a substitute for the Championship high-flyers.
Restore Data
| Team | P | W | D | L | F | A | GD | PTS | |
| 1 | West Bromwich AlbionWest Brom | 6 | 5 | 1 | 0 | 10 | 2 | 8 | 16 |
| 2 | Sunderland | 6 | 5 | 0 | 1 | 13 | 4 | 9 | 15 |
| 3 | Burnley | 6 | 4 | 1 | 1 | 13 | 4 | 9 | 13 |
| 4 | Sheffield UnitedSheff Utd | 6 | 4 | 2 | 0 | 9 | 3 | 6 | 12 |
| 5 | Blackburn RoversBlackburn | 5 | 3 | 2 | 0 | 12 | 6 | 6 | 11 |
| 6 | Leeds UnitedLeeds | 6 | 3 | 2 | 1 | 9 | 4 | 5 | 11 |
| 7 | Swansea CitySwansea | 6 | 3 | 1 | 2 | 7 | 4 | 3 | 10 |
| 8 | Watford | 6 | 3 | 1 | 2 | 10 | 9 | 1 | 10 |
| 9 | Oxford UnitedOxford Utd | 6 | 3 | 0 | 3 | 10 | 8 | 2 | 9 |
| 10 | Derby CountyDerby | 6 | 3 | 0 | 3 | 8 | 7 | 1 | 9 |
| 11 | Norwich CityNorwich | 6 | 2 | 2 | 2 | 8 | 7 | 1 | 8 |
| 12 | Middlesbrough | 6 | 2 | 2 | 2 | 6 | 5 | 1 | 8 |
| 13 | Bristol City | 6 | 2 | 2 | 2 | 8 | 12 | -4 | 8 |
| 14 | Queens Park RangersQPR | 6 | 1 | 4 | 1 | 8 | 9 | -1 | 7 |
| 15 | Luton TownLuton | 6 | 2 | 1 | 3 | 5 | 8 | -3 | 7 |
| 16 | Hull City | 6 | 1 | 3 | 2 | 5 | 7 | -2 | 6 |
| 17 | Stoke CityStoke | 6 | 2 | 0 | 4 | 4 | 9 | -5 | 6 |
| 18 | Millwall | 6 | 1 | 2 | 3 | 9 | 9 | 0 | 5 |
| 19 | Coventry CityCoventry | 6 | 1 | 2 | 3 | 6 | 8 | -2 | 5 |
| 20 | Plymouth ArgylePlymouth | 6 | 1 | 2 | 3 | 5 | 10 | -5 | 5 |
| 21 | Sheffield WednesdaySheff Weds | 6 | 1 | 1 | 4 | 6 | 12 | -6 | 4 |
| 22 | Preston North EndPreston | 5 | 1 | 1 | 3 | 3 | 9 | -6 | 4 |
| 23 | Portsmouth | 6 | 0 | 3 | 3 | 7 | 13 | -6 | 3 |
| 24 | Cardiff CityCardiff | 6 | 0 | 1 | 5 | 1 | 13 | -12 | 1 |
| > Championship Full Table | |||||||||
