The Royals beat Cardiff City last week to make it three wins from three to begin the campaign, while Watford are two points further back after making a positive start of their own.
Not a lot was expected at Reading under unknown boss Veljko Paunovic this season but, a little over a month into his tenure, he continues to defy expectations.
Paunovic's side are kept off top spot on goal difference by Bristol City after following up 2-0 wins over Derby County and Barnsley with a 2-1 victory at Cardiff last Saturday.
The Royals are now looking to make it four league wins in a row to begin a season for the first time since 1985-86 when they were promoted from the third tier as champions.
Watford will provide a very tough test, though, having picked up two wins and a draw from their three matches since being relegated from the Premier League.
Vladimir Ivic's side have defeated Middlesbrough and rivals Luton Town by the same 1-0 scoreline at home, either side of a stalemate away to Sheffield Wednesday.
Not since 1988-89 have Watford kept a clean sheet in their first four league matches, with the Hornets facing a league-low five shots on target so far this term.
The visitors were 2-0 winners when the sides last met at the Madejski Stadium in a 2018-19 EFL Cup tie, and they ran out resounding 4-1 winners in the most recent league game.
Reading Championship form: WWW
Reading form (all competitions): WWLWW
Watford Championship form: WDW
Watford form (all competitions): WWDLW
Paunovic continues to have a selection headache at right-back, where Liam Moore may have to fill in due those aforementioned injuries.
Joao limped off after scoring against Cardiff in what could prove to be a big blow for Reading, so George Puskas may make his first league start of the season.
Defender William Troost-Ekong was added to an already very strong squad this week, but he is expected to be made to wait for his debut.
Watford have had a full week's rest between matches so not many changes are likely at the Madejski Stadium.
Reading possible starting lineup:
Cabral; Moore, Morrison, McIntyre, Richards; Laurent, Rinomhota; Meite, Ejaria, Olise; Puscas
Watford possible starting lineup:
Foster; Cathcart, Kabasele, Wilmot; Ngakia, Chalobah, Cleverley, Sema; Sarr, Quina; Pedro
We say: Reading 1-0 Watford
Watford have been very strong defensively so far this season but they have not exactly been free-scoring at the other end of the field.
The Hornets' away record is pretty poor and we can see them slipping to a first loss of the campaign this weekend.
Should that happen, Reading boss Paunovic will become the first manager to win his first four league matches in England's top four tiers since Maurizio Sarri for Chelsea in 2018.