Watertown is a very small city located in the state of Minnesota. With a population of 4,842 people and two associated neighborhoods, Watertown is the 168th largest community in Minnesota.

One interesting thing about the economy is that relatively large numbers of people worked from their home: 20.85% of the workforce. While this number may seem small overall, as a fraction of the total workforce this is high compared to the rest of the county. These workers are often telecommuters who work in knowledge-based, white-collar professions. For example, Silicon Valley has large numbers of people who telecommute. Other at-home workers may be self-employed people who operate small businesses out of their homes.

Because of many things, Watertown is a very good place for families to consider. With an enviable combination of good schools, low crime, college-educated neighbors who tend to support education because of their own experiences, and a high rate of home ownership in predominantly single-family properties, Watertown really has some of the features that families look for when choosing a good community to raise children. Is Watertown perfect? Of course not, and if you like frenetic nightlife, it will be far from your cup of tea. But overall this is a solid community, with many things to recommend it as a family-friendly place to live.

One downside of living in Watertown, however, is that residents on average have to contend with a long commute, spending on average 30.36 minutes every day commuting to work.

The education level of Watertown citizens is a little higher than the average for US cities and towns: 24.04% of adults in Watertown have at least a bachelor's degree.

The per capita income in Watertown in 2022 was $42,718, which is upper middle income relative to Minnesota and the nation. This equates to an annual income of $170,872 for a family of four. However, Watertown contains both very wealthy and poor people as well.

The people who call Watertown home describe themselves as belonging to a variety of racial and ethnic groups. The greatest number of Watertown residents report their race to be White, followed by Asian. Important ancestries of people in Watertown include German, Norwegian, Swedish, Irish, and Finnish.

The most common language spoken in Watertown is English. Other important languages spoken here include Polish and Greek.