Watson, sometimes called Watson's Store, is at the intersection of U.S. Highway 183 and Farm Road 963 eighteen miles northeast of Burnet in northeastern Burnet County. It was named for Ed Watson, a local storeowner. A school was established near Watson in 1879; the Pleasant Hill, or Red Bud School, was built in the area in 1908. It was consolidated with the Briggs district in the 1930s. A church, a cemetery, and a few scattered houses marked the community on county highway maps in the 1940s and the 1980s. In 2000 the population was ninety-eight.