Lee McCulloch's tenth minute header from Jimmy Bullard's corner was enough to secure a victory but it was yet another impressive display from the first division new boys that should have brought them victory by a wider margin.
Nathan Ellington might have helped himself to a first-half hat-trick but he was denied by two saves from Alec Chamberlain and then saw a 20-yard effort hit the crossbar.
Watford were seldom in the hunt in the first half that saw Wigan totally dominant and McCulloch should have added a second on the stroke of half time but he saw his shot deflected over the bar.
The pattern continued after the break although Watford had more possession but they failed to trouble Wigan keeper John Filan.
Ellington once again blazed over from Bullard's astute pass and Chamberlaiin again came to his side's rescue with a smart save from substitute Neil Roberts.
Tony Dinning blasted a 20-yard effort inches wide and Andy Liddell headed over when it seemed easier to score.
But with the fans screaming with delight at the final whistle, manager Paul Jewell will once again be urging everyone to keep their feet on the ground.
But after eight games those same fans will probably admit to being in dreamland.
The Latics have lost just five times in 58 outings, easily the best record in the country and while Jewell will be urging caution there is no doubt that his side is only going to get better.
And, with the chairman Dave Whelan pledging to pump even more funds into the club in his quest for the Premiership, the future is looking rosy.
Wigan: Filan, Eaden, Breckin, Jackson, Kennedy, Liddell, Dinning, Bullard, McCulloch, Horsfield, Ellington. Subs: Walsh, Teale, Mitchell, Burchill, Roberts.
Watford: Chamberlain, Cox, Dyche, Gayle, Robinson, Devlin, Hand, Mahon, Cook, Dyer, Webber. Subs: Pidgeley, Fitzgerald, Young, Fisken, Doyley.
Referee: R Beeby (Northamptonshire).