Tim Waterstone founded Waterstone's, after being sacked by WH Smith. The chain was previously known as Dillons, and was branded as Watersone's in 1999.

Waterstone's works closely with Amazon for selling books online, though the store will have their own site for Christmas 2006, allowing customers to have the choice of picking up online purchases from their local stores.

Waterstone's offers a wide range of books,covering all genres. Some stores are located near universities, and the Piccadilly brance in London is the largest bookstore in Europe.

There are around 200 stores in the United Kingdom. Most stores usually have more than one floor. Some stores sell other items as well as books, such as calendars.

Waterstone's hold a number of events, such as book signings, events for children, talks and much more. Their website gives details of which authors will be visiting certain stores.