The building also hosts UWE eMedia Business Enterprises,[4] Most of Watershed's facilities are situated on the second floor of two of the transit sheds.

It was launched in 1997 by Paul McGann and featured lectures & seminars by local actor Christopher Morris, Shawn Sobers of HTV, filmmaker Fergus Colville, Casualty make up artist, Chrissie Powell and EastEnders executive producer Matthew Robinson.

[14] In 2000, The Independent on Sunday's list of "five of the best indie cinemas" put the Watershed at the top, citing its wide-ranging, international programme.

It hosts the annual online short-film festival Depict.org, selecting "micro films" (no more than ninety seconds long) from around the world, giving a cash prize to the winner.

[20] Watershed subsidiary, iShed, was established in 2007 to produce creative collaborations, support new ideas, explore emerging technologies and develop talent.

[21] iShed's portfolio includes commissioning schemes, events, research and consultancy produced through local, national and international partnerships with industry, artists and universities.

[23] iShed also runs The Pervasive Media Studio, a partnership between Watershed, HP Labs and UWE set up to support interdisciplinary research and development.