Walters went on to coach the Toowoomba Clydesdales in the Queensland Cup competition and was also assistant coach under Wayne Bennett for the Brisbane Broncos. At the end of the 2005 season, after five successive years without a grand final appearance, Bennett decided to have a cleanout of the coaching staff, removing such long-time allies as Walters, Gary Belcher and Glenn Lazarus. Walters then became head coach of the Ipswich Jets playing in the Queensland Cup before attracting the attention of the Super League.