Ferguson described the news of Mr Watson's passing as a 'big shock' and says it is important his legacy at the club is maintained.
"I'm sure his family are looking to carry on his legacy and the club will make sure to do so," Ferguson said.
"He's done an awful lot for this club in the time that he's been here.
"I'm sure everyone is aware of that and everyone appreciates that.
"It's important we do all we can to keep that legacy there.
"He'll never be forgotten."
Mr Watson became co-owner of Rovers in 2007 when, along with Terry Bramall, he was brought into the club by John Ryan.
His and Mr Bramall's investment undoubtedly accelerated the rise into the Championship and helped sustain Rovers in the second tier for four seasons.
He was named president in 2014 with his son Andrew Watson appointed vice chairman last year.
Mr Watson died at the age of 75. The Tickhill construction magnate had suffered from numerous health issues, undergoing a double heart bypass in 2014. It is understood he had been particularly ill in recent months.
Ferguson added: "It's come as a shock to all of us.
"I've spoke to players about it on Tuesday morning. It was a real shock and a real shame.
"I didn't get to know Dick that well, but the time I spent with him, I really enjoyed his company.
"The club meant everything to him, he would have done anything for the club.
"He was a really, really nice man. He is going to be greatly missed, I have to say.
"Obviously our thoughts are with his family and Andy and his family.
"I know the club are going to do a special celebration of his life for the Gillingham game which I think is only right."