The Lancers finished the tournament with a final round 297 to post an 887 (298-289-297), finishing near the middle of the 20-team field.
Watson carded a 70 in the final round to shoot a seven-under 209 (71-68-70) and tie for third place. The CBU junior won the Smee Builders Invitational in the Lancers' last competition.
"Steven is on a roll right now," said Head Coach Lane Pace. "He's playing very smart golf and that's the number one thing we ask of the guys every time out."
Coming into the season, Watson's career best finish was a tie for 14th. He currently has a career low 74.2 scoring average in 21 rounds played this season.
As a team, CBU entered the final round in a tie for 12th, dropping one place behind Cal State Monterey Bay.
"We just need to keep grinding," said Pace. "We were able to beat some PacWest teams in this field and there were others ahead of us. We know where we need to be and what our ultimate goal is at the conference tournament, we just need to put the work in to get there and keep getting better."
Fellow conference members Notre Dame de Namur (890) and BYU-Hawaii (893) both finished behind the Lancers, while No. 11 Grand Canyon (867) finished seventh in the field and Dixie State (868) finished eighth.
No. 3-ranked Cal State Stanislaus won the tournament with an 840 (279-283-278), followed by No. 10 Western Washington (849) and No. 20 Colorado-Colorado Springs (851).
The Lancers have two more tournaments before the PacWest Championship in April.