Sue,
Thanks. I looked at the census return again and I think you are right, Henry GAWN could be the name, rather than GAION. What makes you say he appears to be from Rushen?
Most of Edward's children had middle names but none NELSON.
Edward died on 7 Mar 1867 - he was living at 4 St James Street Liverpool at the time. As with the 41, 51 and 61 census returns his death certificate shows no middle name. I don't know where he was buried.
I will search the children and also the other Edward Watersons as you suggest.
John