Answer:  

The name Walter is an ancient one: it is a personal name meaning 'powerful warrior'.

Teutonic:  Walther, Walthar
Old English: W(e)aldhere 
Anglo-French:  Wautier - which went on to be spelled 'Walter' (pronounced Water) and gave rise to the diminutive Wat, Watt, and Wattie

Other names also originate from Walter:

Watson:  'Son of Walter' originating from the diminutive Wat/Watt
MacWatt/MacWattie/ MacQuattie: A Highland border, Moray and Blcack Isle name formed from Wat/Watt 
MacWatters:  'Son of Walter' confined more or less to Caithness
MacWalter/MacQualter/ MacQuatter: 'Son of WAlter' An old form of the name in Galloway was MacQuhalter

 

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