After a 3-2 defeat at Eastleigh in his first game last month, the Heed boss has seen his side keep five consecutive clean sheets in all competitions.
Their latest, yesterday, ended in a 1-0 victory after Tranmere's Adam Buxton turned into his own net in the 93rd minute.
The result moved Gateshead up to 11th, leaving Watson thrilled.
"I'm delighted with the result," he said. "They're a very good side, Tranmere. They'll keep improving as the season goes on, I wouldn't be surprised if they're up in the play-offs at the end of the season.
"We had a lot of chances to test their goalie and we never did. We've won the game without hitting the target I think. Obviously we need to improve on that. We probably had more chances than them but they probably had better chances.
"Hats off again to some of the defending at the end, the last ditch clearances and the heading.
"There's a lot to improve on but it's another win and five clean sheets in a row."
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