Waters began kart racing in 2001, winning multiple state championships and the J.C. Maddox Trophy twice before transitioning to open-wheel racing. He competed in Formula Vee in 2009, then moved to the Australian Formula Ford Championship in 2010, earning Rookie of the Year honours. In 2011 he won the Formula Ford championship outright, taking seven race wins.
Waters made his Bathurst 1000 debut in 2011 under exceptional circumstances. He won the Shannons Supercar Showdown, a reality television competition run by Kelly Racing offering ten drivers the chance to compete at Bathurst. Waters beat British driver Andrew Jordan in the final episode to secure the seat, partnering Grant Denyer. The entry retired after Waters hit the wall at Forrests Elbow. His participation at the age of 17 made him the youngest driver in Bathurst 1000 history.
He returned to Bathurst in 2012 alongside Jesse Dixon — the winner of that year's Showdown edition — and in 2014 alongside Jack Perkins, finishing twelfth. After time in the Dunlop V8 Supercar Series with various teams, including a tenth-place championship finish in 2013, Waters joined Prodrive Racing Australia for 2015. He was runner-up with Chaz Mostert at the Sandown 500 that year before Mostert crashed heavily at Bathurst, removing their entry. Waters deputised for the injured Mostert at subsequent rounds. He clinched the 2015 Dunlop Series title at Sydney Olympic Park, defeating reigning champion Paul Dumbrell.
Waters made his full-time Supercars Championship debut in 2016 with Prodrive Racing Australia (later Tickford Racing) in the No. 6 Ford. In 2017 he recorded his first Supercars race win at the Sandown 500 alongside Richie Stanaway, who also achieved his first win in the category.
Waters developed into one of the more consistent frontrunners in the Supercars field over the following seasons. His 2025 Sydney 500 was a dominant performance: he won all three races, secured all three pole positions, and set all three fastest laps. The second race of the weekend produced one of the closest finishes in modern series history, with Waters beating Broc Feeney by 0.0308 seconds — the tightest margin since the 1983 Adelaide International Raceway round.
Waters expanded his profile internationally with NASCAR appearances in 2024. He made his NASCAR Craftsman Truck Series debut at Martinsville Speedway for ThorSport Racing, and later made his NASCAR Cup Series debut at Sonoma Raceway driving the No. 60 Ford for RFK Racing. He worked his way into the top fifteen during the Cup race before getting caught in a wreck that ended his run after 66 of 110 laps, finishing 35th. He returned for the inaugural Lime Rock Craftsman Truck Series race in June 2025.
Waters' record as the youngest Bathurst 1000 competitor distinguishes his entry into top-level motorsport. His progression from reality TV contest winner to a multiple race-winning, pole-scoring regular in the Supercars Championship represents one of the more complete development arcs in the series' recent history. His NASCAR crossover appearances extended Australian Supercars' presence in American oval and road-course competition.