Thanks to steady early morning rainfall the drivers were greeted with damp conditions to start the final half-hour practice session.
That meant times started back in the 1m14s bracket, Chaz Mostert leading the way early on wet tyres.
Conditions improved rapidly, though, Will Davison jumping to the top with a 1m13.184s on slick tyres just five minutes in.
The times continued to tumble throughout the session, the likes of David Reynolds, Andre Heimgartner and Waters all spending time at the top.
Waters then put the session beyond doubt on his final run, a 1m09.184s leaving him three-tenths clear of the field.
Chaz Mostert wound up second while Will Brown made gains on his final run to pop up in third position.
Pre-race favourite Shane van Gisbergen was fourth fastest after jumping fellow Kiwi Andre Heimgartner on his final run.
Scott Pye was sixth fastest followed by Davison, Reynolds, Bryce Fullwood and Tim Slade.
It was a tough session for Broc Feeney, meanwhile, the Triple Eight rookie one of a number of drivers to slide off at a slippery Turn 2.
He ended up 25th and last, almost three seconds off the pace.
The action continues with a three-part qualifying session starting at 12:50pm local time.
