As property values within the Boston metropolitan area continue to rise, Watertown has gained in appeal as an attractive, affordable alternative to more expensive communities such as Cambridge, Brookline, Belmont, and Boston proper. Close to Soldiers Field Road and the Massachusetts Turnpike, major arteries into downtown Boston, Watertown has easy access to both Boston nightlife and more suburban communities such as Newton. Watertown Square is the terminus of several MBTA bus and trackless trolley routes. The former A-Watertown line of the MBTA Green Line ran to Watertown until 1969.

The Watertown Arsenal was a major American arsenal located on the northern shore of the Charles River in Watertown, Massachusetts. It is now registered on the list of historic civil engineering landmarks, and is the site of the Arsenal Mall.