Sir Delius was left flat-footed turning for home first-up but stuck on over the final stages.
Waterhouse said the rise in trip would be ideal on Saturday, although there was room for improvement ahead of 'D-day', the Cox Plate (2000m) at Flemington on October 24.
"That's his D-day, but he's a very fit horse and in the right mindset going into Saturday," Waterhouse said.
"He's had more gallops, more time down here.
"I've got him walking more, all the little things that will help him on D-day and hopefully it's a stepping stone, the Turnbull.
"I think I've got him spot on. Adrian has done a fantastic job to send him down to me down here and I love having these sorts of horses down here at Flemington."
Vauban also worked at Flemington on Tuesday, going over 1400m.
Waterhouse said she would have a 'think' as to whether Vauban runs on Saturday or is held back for later in the Melbourne Spring Carnival.
"He did the old, more mature type of work," Waterhouse said.
"He did pacework over seven furlongs (1400m). He really enjoyed it. Stretched his legs, had a look around.
"Is he ready, I'm not sure. I'll have to have a think about it and decide whether to run on Saturday in the Turnbull or we wait for later in the Carnival."