He only won 23% of the vote. However, his independent candidacy siphoned off enough votes from Lieutenant Governor Jack Mildren, the Democratic candidate, to allow Frank Keating, a Reagan administration official, to become only the third Republican governor in Oklahoma history at that point. Watkins tallied over 233,000 votes, far more than Keating's 171,000-vote margin over Mildren. He dominated his former congressional district, winning many of the counties there by large margins. In 1996, Brewster decided to retire from Congress as it became known that Watkins wanted his seat back. The Republican House leadership persuaded Watkins to run as a Republican, seeing a chance to win a seat where they had never made a serious bid since Oklahoma joined the Union in 1907. They promised Watkins a seat on the Ways and Means Committee with full seniority if he ran as a Republican and won. No congressman had ever served on all three of the major financial committees (Appropriations, Budget and Ways and Means) before. Despite Albert endorsing Watkins' Democratic opponent, State Senator Darryl Roberts, Watkins won a narrow victory, becoming the first Republican to represent Little Dixie since statehood (it had previously been the 4th District from 1907 to 1915, and had been the 3rd since 1915). Watkins initially planned to retire from office in 1998 after undergoing back surgery, but was persuaded to run again. He was handily re-elected that year, defeating Walt Roberts. He faced no major-party opposition when he ran for his third term in 2000. Watkins' voting record in his first period in Congress had been characterized as somewhat moderate. During his second period, however, his voting record was strongly conservative, usually receiving ratings in the high 90s from the American Conservative Union. Oklahoma lost a congressional seat after the 2000 census due to slower than expected population growth. The final map saw Watkins' district dismantled, with its territory split between three nearby districts. His home in Stillwater (where he had lived since 1990) was drawn into the western Oklahoma-based 3rd district (the former 6th district), represented by fellow Republican Frank Lucas. Most of his old base in Little Dixie was merged into the Muskogee-based 2nd district. The western portion, including Watkins' former home in Ada, was drawn into the Norman-based 4th district. Faced with the prospect of running in territory that he did not know and that did not know him, Watkins announced he would retire for good. In an indication of how much his politics had changed since leaving the House for the first time, Watkins served as honorary chairman for conservative Senator Jim Inhofe's bid for a second full term.