The local newspaper is the McKenzie County Farmer and Watford City is the location of the main offices for the First International Bank and Trust. It is also the headquarters for McKenzie Electric Cooperative.
As of the census of 2000, there were 1,435 people, 619 households, and 378 families residing in the city. The population density was 964.8 people per square mile (371.9/km²). There were 790 housing units at an average density of 531.2/sq mi (204.7/km²). The racial makeup of the city was 94.91% White, 0.21% African American, 3.83% Native American, 0.07% Asian, and 0.98% from two or more races. Hispanic or Latino of any race were 1.11% of the population.
There were 619 households out of which 28.4% had children under the age of 18 living with them, 48.9% were married couples living together, 8.7% had a female householder with no husband present, and 38.8% were non-families. 37.5% of all households were made up of individuals and 22.0% had someone living alone who was 65 years of age or older. The average household size was 2.22 and the average family size was 2.91.
In the city the population was spread out with 24.8% under the age of 18, 5.7% from 18 to 24, 20.4% from 25 to 44, 24.8% from 45 to 64, and 24.3% who were 65 years of age or older. The median age was 44 years. For every 100 females there were 88.8 males. For every 100 females age 18 and over, there were 83.8 males.
The median income for a household in the city was $29,688, and the median income for a family was $36,850. Males had a median income of $32,250 versus $21,193 for females. The per capita income for the city was $18,084. About 9.8% of families and 12.2% of the population were below the poverty line, including 15.0% of those under age 18 and 13.9% of those age 65 or over.