Item 2.05 Costs Associated with Exit or Disposal Activities.

On September 21, 2009, the Board of Directors of Watts Water Technologies, Inc. (the "Registrant") committed to a plan to dispose of the Registrant's investment in Watts Valve (Changsha) Co., Ltd. ("Changsha"), an indirect wholly-owned subsidiary of the Registrant in China. The Registrant has engaged the services of an investment bank to assist the Registrant with the marketing and sale of Changsha. The Registrant expects that the sale of Changsha will be completed within the next twelve months. At this time, the Registrant is not able to determine whether it will recognize a gain or a loss on the disposal of Changsha or estimate the amount of any such gain or loss. The Registrant believes that the disposal of Changsha will not have a material adverse effect on its liquidity.

This Current Report on Form 8-K includes forward-looking statements on the timing of the Changsha disposition and the expected effect of such disposition on the Registrant's liquidity. Important factors could cause actual results to differ materially from these forward-looking statements. These factors include, but are not limited to: the success of the investment bank in finding an appropriate buyer for Changsha, market conditions in China, Chinese governmental regulations, economic and financial conditions generally, the availability of willing buyers, foreign exchange rate fluctuations and other risks and uncertainties discussed under the heading "Item 1A. Risk Factors" in the Registrant's Annual Report on Form 10-K for the year ended December 31, 2008 filed with the Securities and Exchange Commission and other reports the Registrant files from time to time with the Securities and Exchange Commission.

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