Indiana held the Bobcats to 11 points in the first quarter and limited them to 31 percent shooting for the game.
The Pacers won their fifth in a row and have lost just once in their 15 outings this season.
All of Watson's points came from beyond the arc. He hit 6-of-9 from the field and also pulled down six rebounds.
Paul George and Lance Stephenson added 15 points each and Roy Hibbert had 14 for Indiana. Both Stephenson and Hibbert had 10 rebounds.
Charlotte, which has lost its last two contests, was led by Al Jefferson with 16 points and nine rebounds.