Watervale is a town on the Horrocks Highway in the Clare Valley, South Australia, approximately nine kilometres north of Auburn and 15 kilometres south of Clare. It is surrounded by a number of small wineries, several bed and breakfasts and holiday cottages.
The Riesling Trail runs past the town to the west, between the Highway and the Skilly Hills. The town has a number of nineteenth century heritage buildings, including the former Stanley Grammar School, which is now a private residence.
The township boasts a general store and post office, hotel, primary school, CFS unit, Anglican and Uniting churches, a garage, a small number of local businesses, wineries, and a variety of recreational facilities at the Watervale Soldiers' Memorial Park (tennis courts and bowling green).
As part of the Clare Valley, the area is known for Riesling. Cabernet and Shiraz wines are also produced. Local wineries include Crabtrees, Stephen John Wines and Annie's Lane.
A local artist of note is Harry Sherwin.
Watervale hosts an annual 'Day on the Green' concert at Annie's Lane, attracting up to 6,000 concert-goers. Many have a great experience camping nearby on the town oval.