A grinding sixth wicket partnership of 71 had Counties in much better shape but three more wickets to Watson left the first innings battle in the balance at 124 for eight.
Once Northland's score was surpassed, though, the Counties' tailenders hit out to good effect, taking their total to 198, with the last wicket falling in the last over of the day.
With Northland's batsmen again struggling to pull off the big scores needed to support their bowlers, taking control of the match may be an uphill battle as Northland start day two 62 runs behind Counties' first innings total.
Northland will need to bat positively if they are to try to reach a sizeable lead while leaving themselves enough time to bowl Counties out a second time.
In the final, Bay of Plenty Coastlands already have one hand on the tournament trophy after scoring 200 and having Hamilton reeling at 14 for four wickets at stumps.
Scoreboard: Bellahomes Northland 136 (Kurtley Watson 41, Kashmir Harypursat 33, David Armitt 13; Jarrod Halliday 4/13) v Counties Manukau 198 (Cameron Gibbons 75, Riley Hohepa 61; Kurtley Watson 4/27, Nick Stobart 3/54, Max Trimble 2/40, Eden Crawford 1/18).