Settlers began arriving in the early 1900s, many of them German American Catholics. The first post office in the area was established on April 1, 1904 and named Vossen after its postmaster, Frank J. Vossen Jr. It was changed to Watson on May 1, 1906, in advance of the village's incorporation on October 6, 1906. The village became a town on August 1, 1908. The town's namesake is SenatorRobert Watson. Senator Watson, originally owned the land the town was built on. Watson celebrated its first Santa Claus Day in 1932, and in 1996 erected a 25-foot (7.6 m)-high Santa Claus to commemorate the event.
Canadian Bank of Commerce (National Historic Site)
The Canadian Bank of Commerce was constructed in 1906 in the Greek Revival style and was designated a National Historic Site in 1977. The building was prefabricated by B.C. Mills, Timber & Trading Company and then assembled on site. This established the presence of the bank in the area before other banks arrived. It now houses the Watson and District Heritage Museum.
McNab Regional Park is a nearby campground facility with swimming pool, playground, and golf course.