Watervale ( 33°57’S, 138°38’E) is a town located in the Clare Valley, South Australia, approximately 9 kilometres north of Auburn and 15 kilometres south of Clare. It is surrounded by a number of small wineries and several B&Bs. The Riesling Trail runs past the town to the west, between the Main North Road and the Skilly Hills. The town has a number of 19th century heritage buildings, including the former Stanley Grammar School, which is now a private residence.
The townhship possesses a general store, hotel, state government primary school, CFS unit, Anglican and Uniting churches, a garage, a handful of local businesses (nursery, antique shop, pest control business) and a variety of recreational facilities (oval, tennis courts and a bowling green).
The hall for the town houses Agricultural Bureau meetings. There is a subsidiary of the Clare Valley council library in the township but this is rarely utilised.