Transferred to Patrol Squadron (VP) 21 in August 1939, Waterman joined that unit in time to make the transpacific flight from Hawaii to the Philippines of VP-21's PBY-4's to reinforce the Asiatic Fleet's patrols out of Cavite and Olongapo.
During the late 1960s Dr Forrest Bird and his Bird Corporation developed a conversion for the PBY Catalina to improve performance.
The PBY Catalina made by Consolidated Aircraft and Canadair seems to have been the first aeroplane to have had an inflatable life boat aboard, first as optional, later as standard equipment.
He was awarded the Distinguished Flying Cross for his outstanding service while commanding a PBY during a bombing attack on a Japanese naval force in Jolo Harbor, Sulu, Philippine Islands, 27 December 1941.
A PBY that took off from Peleliu on 3 August 1945 was the first to locate survivors of the USS Indianapolis 4 days after it was sunk.
He died in his attacking PBY aircraft at Jolo Harbor, Philippines, December 27, 1941, as he remained bravely at his post in the burning, gasoline-flooded radio compartment.