Watertown is a census-designated place (CDP) in Columbia County, Florida, United States.

It is part of the Lake City, Florida Micropolitan Statistical Area.

As of the census[3] of 2000, there were 2,837 people, 1,164 households, and 744 families residing in the CDP.

31.4% of all households were made up of individuals, and 15.7% had someone living alone who was 65 years of age or older.

Out of the total population, 18.7% of those under the age of 18 and 14.7% of those 65 and older were living below the poverty line.