This event, which gave birth to the Champions Tour, returned to its original team format this year after being an individual stroke-play tournament since 2002.
Watson and North came within a shot of the tournament record, set by Al Geiberger and Harold Henning in 1991. North won this event in 2000 and 2001, when he teamed with Jim Colbert.
Watson and North birdied the first seven holes.
"That's the way to do it, isn't it? We birdied the first seven holes," said Watson, who made 10 of his team's 13 birdies. "That sort of got us started, I have to say."
"Basically, Tom played a beautiful round of golf," North said. "He controlled it well off the tee and hit a lot of really good iron shots. Really, he only made maybe two putts over 10 feet long."