The castle was built by Joseph Davie Bassett (1764-10 December 1846), son of John Davie (died 1793) of Orleigh Court, Buckland Brewer and his wife Eleanora Basset of Heanton Court, Heanton Punchardon. His brother was Rev. Charles Davie (1760–1836), rector of Heanton Punchardon, which advowson was possessed by the Bassett family. After his mother became the sole heiress of her childless brother Francis Basset (died 1802), Joseph Davie adopted the name Bassett in lieu of his patronymic and adopted the Bassett armorials. He sold Orleigh in 1807 and built Watermouth Castle as his principal residence. He married Mary Irwin (1777-21/4/1862) of Barnstaple.