Burley, playing possibly his last game for the club had a hand in all three goals as the Rams enjoyed their biggest win since the opening day of the season.
Burley may still be finding his feet and fitness after a year out with an Achilles tendon injury, but his performance brought a measure of creativity and control to a Derby midfield so often overrun this season.
The Pride Park faithful had barely taken their seats for the game when the home side took the lead inside three minutes.
A darting run by Lee Morris had earned a corner which Burley curled in to the penalty area. Steve Elliott fashioned a powerful header goalwards and there was Morris to flick another header from three yards past Alec Chamberlain.
Burley nearly doubled the lead when his powerful drive from the edge of the box was well gathered by the keeper.
Watford who started the day in seventh place created several opportunities themselves with the closest being a 25-yard free-kick from Marcus Gayle which narrowly cleared the crossbar.
So often the Rams have had a tendency to let games slip at home, but this time they stepped up a gear in the second half.
Chances had fallen to Elliott, Deon Burton and Burley, before they made the game safe after 62 minutes. Again it was a set-piece that proved the HornetsÂ’ undoing and it was another defender, this time Chris Riggott, who got a head to a Burley corner and the ball looped over Chamberlain and into the net.
With a party atmosphere threatening to engulf the stadium, the teams saved the best until last - the superbly crafted third.
Morris fed Malcolm Christie, who ushered the ball forward to Burley. The man of the match clearly thought about a shot before choosing to cross to Burton and the transfer-listed striker controlled the ball and buried a shot into the bottom corner.