Emma said her grandmother was well known on the island and the locals would pop in for a coffee or to bring her the newspaper.
"She was a beautiful lady, very warm-hearted, kind-spirited, strong, determined and brave," Emma reminisced, breaking down.
"I probably didn't see her as much as I should."
Emma said Ms Watson, a Broncos fan, was also very stubborn to do things herself and took immense pride in her garden, her pet finches and her family.
She said Ms Watson had served as a nurse in Germany in World War II and had also lived in New Zealand.
"She is very very strong-willed and had her own ways," Emma said.
"She was happy."
Police on Saturday scoured through a truckload of rubbish for more than eight hours but didn't unearth a clue as to who killed Ms Watson.
Detective Superintendent Geoff Sheldon said that although some suspicious items were found, like household linen and clothing, nothing "lighted up a light".
Since Ms Watson's death, the 1200-strong community has overwhelmed police with information, including concerns about break-and-enters and drug use.
"We've had a hell of a lot of information from the public, to put it bluntly," Det Supt Sheldon said.
Police also searched one resident's home, armed with a search warrant on Friday night.
Officers said the man was not a suspect.
-AAP
