Part of the School of Music Complex, the Judy and Bill Watson Chamber Music Hall began construction in December 2001. The Watson Chamber Music Hall was dedicated on Saturday, October 25, 2003. The dedication program included the premiere performance of William Bolcom's Eleventh String Quartet by the Mendelssohn Quartet. This new work was commissioned by the University of North Carolina School of the Arts to honor the opening of the hall.

Watson Chamber Music Hall has 292 seats and can accomodate up to eight wheelchairs. Designed by renowned acoustician Rein Pirn, the hall serves as the principle performance venue for the School of Music faculty and guest artist concert series. The hall also provides a venue for graduating college senior recitals and second year graduate recitals.

The hall has four dressing rooms and a warm up room located off stage right. It is also equipped with an upstage crossover and access to the lobby from both sides of the stage. The hall is designed with acoustic curtains that can be manipulated to change the acoustic properties of the hall. A special "high volume, low velocity" HVAC system was designed to minimize the ambient noise level of the hall.