-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 H5/6m1qAXoYhEABIYoXFYWMe/6oJLTu3U3T89bIcjDWdJFspQB7ma525bt/JRSBT
 ReMTXqAIK941ZGWPepX89w==

<SEC-DOCUMENT>0001072613-07-002170.txt : 20070917
<SEC-HEADER>0001072613-07-002170.hdr.sgml : 20070917
<ACCEPTANCE-DATETIME>20070917140842
ACCESSION NUMBER:		0001072613-07-002170
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070907
FILED AS OF DATE:		20070917
DATE AS OF CHANGE:		20070917

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DATAWATCH CORP
		CENTRAL INDEX KEY:			0000792130
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				020405716
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	BUSINESS ADDRESS:	
		STREET 1:		271 MILL ROAD
		STREET 2:		QUORUM OFFICE PARK
		CITY:			CHELMSFORD
		STATE:			MA
		ZIP:			01824
		BUSINESS PHONE:		978-441-2200

	MAIL ADDRESS:	
		STREET 1:		271 MILL ROAD
		STREET 2:		QUORUM OFFICE PARK
		CITY:			CHELMSFORD
		STATE:			MA
		ZIP:			01824

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Incropera Daniel F
		CENTRAL INDEX KEY:			0001411961

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19960
		FILM NUMBER:		071119723

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		978-275-8206

	MAIL ADDRESS:	
		STREET 1:		53 STACEY CIRCLE
		CITY:			WINDHAM
		STATE:			NH
		ZIP:			03087
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>pro-090707_15429ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2007-09-07</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0000792130</issuerCik>
        <issuerName>DATAWATCH CORP</issuerName>
        <issuerTradingSymbol>DWCH</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001411961</rptOwnerCik>
            <rptOwnerName>Incropera Daniel F</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O DATAWATCH CORPORATION</rptOwnerStreet1>
            <rptOwnerStreet2>271 MILL ROAD, QUORUM OFFICE PARK</rptOwnerStreet2>
            <rptOwnerCity>CHELMSFORD</rptOwnerCity>
            <rptOwnerState>MA</rptOwnerState>
            <rptOwnerZipCode>01824</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Corp. Controller &amp; V.P.</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>Stock Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>2.49</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2013-10-18</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>10000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">833 shares vested on each of 1/18/07, 4/18/07 and 7/18/07 and an additional 833 shares will vest at the end of each
 three-month period thereafter for eight (8) such periods, with 837 shares vesting on 10/18/09.  This vesting schedule is
 subject to acceleration in certain instances in connection with an acquisition or other change of control event.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>By: /s/ Daniel F. Incropera</signatureName>
        <signatureDate>2007-09-17</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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