According to the United States Census Bureau, the borough has a total area of 1.2 square miles (3.2 km²), of which, 1.2 square miles (3.2 km²) of it is land and 0.04 square miles (0.1 km²) of it (1.63%) is water.
There were 558 households out of which 35.7% had children under the age of 18 living with them, 57.7% were married couples living together, 12.5% had a female householder with no husband present, and 26.7% were non-families. 21.7% of all households were made up of individuals and 10.6% had someone living alone who was 65 years of age or older. The average household size was 2.60 and the average family size was 3.01.
In the borough the population was spread out with 27.1% under the age of 18, 8.6% from 18 to 24, 27.9% from 25 to 44, 23.0% from 45 to 64, and 13.4% who were 65 years of age or older. The median age was 36 years. For every 100 females there were 91.2 males. For every 100 females age 18 and over, there were 85.6 males.
The median income for a household in the borough was $37,875, and the median income for a family was $40,368. Males had a median income of $32,946 versus $21,202 for females. The per capita income for the borough was $17,135. About 4.5% of families and 7.2% of the population were below the poverty line, including 8.2% of those under age 18 and 4.0% of those age 65 or over.
Waterford is said to contain the only statue of George Washington wearing a British uniform but, in reality, he was sent by the Governor of Virginia and is wearing the uniform of an officer in the Virginia Militia.