Wateree was built at Chester, Pennsylvania, by Reaney, Son & Archbold; launched on 12 August 1863; and commissioned at the Philadelphia Navy Yard on 20 January 1864, Comdr.

For the remaining two years of her brief naval career, Wateree patrolled the coasts of Central and South America, protecting American interests in that region.

[1] Wateree was enforcing the Monroe Doctrine following the 14 January 1866 Peruvian declaration of war against Spain, and moved south to Arica, Peru (which would later become part of Chile) to avoid a yellow fever epidemic in Callao.

Wateree observed dust from the earthquake and collapsing buildings at 17:20, but the sea remained calm as she sent a boat ashore to offer medical assistance.

The following inward flow created a 46-foot (14 m) wave which snapped anchor chains and carried Wateree 450 yards (410 m) inland 3 miles (5 km) north of Arica at 19:20.