Watertown is a town located in Wilson County, Tennessee. The population was 1,358 at the 2000 census and 1,477 at the 2010 census. It is located southeast of Lebanon.
Prior to the town's establishment, the land was a Revolutionary War grant to Colonel Archibald Lytle and his brother William. Circa 1790, the grandparents of Watertown's founder, Wilson L. Waters, moved into the area. In 1845, the post office moved from nearby Three Forks to Wilson's store. Waters expanded his operations with a sawmill, gristmill and blacksmith shop. Waters' 400-acre (1.6 km2) farm eventually became Watertown. The Nashville and Knoxville Railroad built a depot in Watertown in 1885, making it the hub of business in the area. The increased business led to a doubling of the village's size. In 1903, a fire swept through the wood structures of the village, destroying many businesses. During the recovery period following the fire, a town square surrounded by brick building was laid out, creating the core of the current city of Watertown.