Watterson is an unincorporated community in Bastrop County, Texas, United States.

Initially, the community was known as Live Oaks and a post office with that name was established in 1878.

By 1896, the community had 100 residents, a Methodist church, a cotton gin, gristmill and general store.

Although population figures are unavailable, Watterson was listed in Cities and Towns of Texas during the 1980s and still appears on county highway maps.

In business for at least 55 years,[3] the site served as the Cherry Hill Dance Hall in the Sandra Bullock movie Hope Floats.