The club was established in 1966 when a group of local parents, motivated by a desire to support youth sport in the district, held a meeting at the Watsonia RSL Hall. The formation of the club was guided by former Footscray and Collingwood player Harvey Stevens. In its inaugural year, Watsonia fielded two teams: an Under-13 team that won the Greensborough Midget League premiership, and an Under-15 team that claimed the Preston and Reservoir League flag.
In 1967, Watsonia began playing its home games at A.K. Lines Reserve, fielding four teams in the Panton Hill League. That year, the Senior and Reserve sides finished sixth, the Under-15s were runners-up, and the Under-13s secured another premiership. Initially, players used a small tin shed purchased from Watsonia Motors as changerooms, but it was soon replaced due to complaints from neighbours regarding players changing outdoors.
Significant progress came in 1968 when committee member and builder Gerald Browne constructed the club’s first dedicated clubrooms. On the field, the Under-13 team continued the club’s early success by winning another premiership.
In 1969, Watsonia joined the Diamond Valley Football League (DVFL) under coach Barry Smart, formerly of Sandringham. The senior team struggled, failing to record a win that season, while the junior sides continued to perform strongly, with the Watsonia South Under-13s winning the premiership.
The club recorded its first senior DVFL victory on 30 May 1970, defeating Lalor 16.16 (112) to 9.12 (66), one of six wins achieved by the senior team that season. The Reserves also finished with six wins.
The club’s foundation was guided by its first committee: Neil McGovern (President), Harvey Stevens (Secretary), Michael Walsh (Treasurer), with members Jack Bowman, Willy Flores, Gerald Browne, and Bill Cope.
The club fields teams in Senior football and Netball, as well as Under-19's as has a junior affiliate agreement with Mill Park Football Club.
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