He was born at Well Head House in Halifax, Yorkshire the eldest son of John and Grace Elizabeth (née Rawson) Waterhouse.
They cultivated exotic ferns, including a Todea superba which Waterhouse had imported from New Zealand in 1860 and which is now at Kew Gardens.
Over a period of 8 years (1866–1873), he made detailed observations of the weather and of the night skies from Well Head, which he published in 1874.
A keen photographer, he produced several inventions, including Waterhouse stops for cameras and photographic lenses[2] and an alkaline gold toning bath (see page from 1892 book, figure to the right, below).
[3] He was appointed Deputy Lieutenant of the West Riding of Yorkshire.