in 1937, walters' wife died after a lingering illness. in 1938 he met mildred butler, the woman who would become his second wife. he sailed "bluenose" in one final regatta that year, against the american "gertrude l. thebaud" under captain ben pine. walters; "bluenose" won three of the five races and both could retire undefeated. walters married his second wife mildred butler december 15, 1938. walters retired from sailing, and they started a dairy business in lunenburg, where walters became a town councillor. in the 1941 election, walters attempted to enter provincial politics as a conservative candidate in the dual member lunenburg county riding, but was defeated. in 1955, walters was among the first inductees into the canadian sports hall of fame. walter's wife mildred died at the age of 45 in 1957.