Watford continued their early dominance over the rest of the Championship, recording their eight win from the opening ten games. Will Hoskins and Marlon King were the goal scorers for Watford, who have now picked up 26 points in the league.
Will Hoskins opened the scoring on 24 minutes, collecting a through ball from McAnuff before smashing it past Basso in the City goal.
Watford scored again just before the break, Marlon King bagging his 13th league goal of the season. King picked up a cleared ball and broke on the counter attack, using his pace to get away from Iuliano and sliding the ball into the corner of the net.
King wrapped up the victory two minutes from time, smashing home Smith's low cross to make it 3-0.
Watford boss Adrian Boothroyd told reporters that he was very confident that Watford would be playing Premiership football next season. "We look brilliant at the moment. Our football is fluent and we are finding the net regularly. We must keep our heads and concentrate on one game at a time, but I am confident we can gain promotion this season."
Jack Teague called for his players to show a bit more emotion and passion after the loss. "We are not playing well. In fact we are playing badly, and it's not down to a lack of skill or quality. I think the lads just need to show a bit more passion and commitment on the pitch. Once they do that, I'm sure we will return to winning ways."
Watford are yet to lose this season in all competitions, whilst Bristol City are on a run of four games without a win. Watford face Coventry in two weeks time, whilst City host Leicester.
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Watford: Lee, Mariappa, Eckersley (Henderson 89), DeMerit, Clarke, McAnuff (Armstrong 80), Smith, Bangura, Williamson, King, Hoskins (Britton 71).
Subs not used: Loach, Kabba.
Goals: Hoskins 24, King 44, 88.
Bristol City: Basso, Orr, McAllister, Carey, Iuliano (Vask? 86), Murray, McIndoe, Noble, Talbot (Sproule 65), Byfield, Trundle (Christie 45).
Subs not used: Johnson, McCombe
Booked: Carey, McIndoe, Talbot.
Att: 16803
Ref: Clive Oliver.