Waterman was born on September 8, 1891, in Pine Bluff, Arkansas. After graduating from Pine Bluff High School, he attended Tulane University, where he graduated with a B.A. in 1912. In 1913, he graduated from the University of Michigan with an M.A. in economics. Between 1914 and 1922, he served as a professor of economics at the University of Arkansas.[1] During this time, he occasionally took leave to study at the University of Chicago Law School, where he earned a J.D. with honors in 1923 and finished first in his class.[2]
During his time at Chicago, Waterman was approached by the president of the University of Arkansas, John C. Futrall, to conduct research on what would be required to establish a law school at Arkansas. After conferring with the dean of the University of Chicago Law School, James Parker Hall, Waterman produced a report explaining the feasibility of creating a new law school.[3] After further correspondence with Futrall, Waterman returned to Arkansas and became involved in the planning of the new law school,[4] which the university's board of trustees approved on April 14, 1924.[2] The law school was established, with Waterman serving as its first dean. He later served as vice president of the University of Arkansas from 1937 to 1943.[1]
On September 18, 1943, Waterman died of a ruptured appendix.[3] In 1953, the university named Waterman Hall in his memory.[1]