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It was named for Delos Waterman who homesteaded land there in 1904. The post office operated from 1904 to 1935.

The Waterman Farm (heritage barn) resides adjacent the town. Stories persist that the home and barn were owned by a family who owned a butcher shop in Bremerton. Numerous meat packing hooks, meat processing implements, and a small meat locker (removed) were found on the property. Also on site is a poultry barn.