It follows a Hertfordshire double after Luton Town were dropped from the Championship after they lost at Derby County (1-0) on Friday night.
The Hornets won promotion to the top flight after beating Leeds United 3-0 in the Championship Play-Off Final at the Millennium Stadium last May. Meanwhile Reading and Sheffield United claimed the automatic spot.
Watford were relegated today as the current 24 points they have will not be enough to keep them in the Premier League for next season with only three games remaining.
Manchester City took the lead on the 53rd minute, when Lloyd Doyley passed back to the keeper with Ben Foster making a mistake for Darius Vassel to take advantage.
Ironically, this was to be City's only shot on target throughout the game but the Hornets came back. Douglas Rinaldi put through Tamas Priskin who slotted past keeper Andreas Isaksson to equalise.
The result leaves Watford and former Sheffield United striker Steve Kabba playing Championship football next season - though like most relegated clubs look to bounce back at the first attempt.
Indeed Sheffield United too aren't safe from the dreaded drop zone, but bleased with the run-in they have been given. A point today at Charlton with Jonathan Stead rubbing out Talal El Karkouri's effort was an important point in their battle against the drop but must claim three points against Watford next Saturday.
Arguably, Wigan Athletic won't be pleased with their end of season fixtures. Like Fulham they also still have Middlesbrough to play who claimed a point at Old Trafford today, but Fulham will be looking behind their backs with Liverpool and Arsenal still to play.
The remaining fixtures are difficult for all teams, especially if your not performing. We only hope by the end of the 38 games it's not Sheffield United who join Watford in the Championship next season.
Fulham: 29 April - Arsenal (a), 5 May - Liverpool (a), 13 May - Middlesbrough (a)
Wigan Athletic: 29 April - West Ham United (h), 5 May - Middlesbrough (h), 13 May - Sheffield United (a)
Sheffield United: 28 April - Watford (h), 5 May - Aston Villa (h), 13 May - Wigan Athletic (h)
Charlton Athletic: 28 April - Blackburn Rovers (a), 7 May - Tottenham Hotspur (h), 13 May - Liverpool (a)
West Ham United: 29 April - Wigan Athletic (a), 5 May - Bolton Wanderers (h), 13 May - Manchester United (a)
Blades-Mad Prediction: Watford, Charlton Athletic and Fulham will not avoid relegation.