The species is native to islands in the Caribbean Lesser Antilles.

Anolis wattsii is native to Antigua, and has also been introduced to Saint Lucia.

At a minimum, the three taxa are very closely related, and similar in appearance, ecology, and behavior.

A. w. schwartzi is found on Sint Eustatius, Saint Kitts, and Nevis.

The specific name, wattsii, is in honor of Dr. Sir Francis Watts who became the Commissioner of Agriculture for the West Indies.