 With the entry of the second Western Australian team in 1995, Watters returned to join the Fremantle Dockers and was the first vice-captain of the club.Injuries, however, would take their toll and at the end of the 1996 season he retired from AFL football.He continued to play for South Fremantle until the 1998 season, when he retired with a total of 207 senior games, 109 in the AFL, 92 in the WAFL and six for Western Australia.