The origins of this company are complex, but they dated from the activities of silver smith Joseph Waterhouse (1759-1826).  Born in Ecclesall, Waterhouse was apparently trained at Ashforth, Ellis and was then involved in various partnerships in the 1790s and early 1800s with the Kirkby family.   In 1795, when one of the partners (John Walton) withdrew, the dissolution notice listed: Samuel Kirkby, James Kirkby, Joseph Waterhouse, Joseph Elliot, and John Hodgson.  In 1797, Kirkby, Waterhouse & Co was listed as a silver plater in Carver Street.  A silver mark was registered in 1804 by James Kirkby, Joseph Waterhouse, and John Hodgson.  Samuel Kirkby and Joseph Elliot were also partners, though they dropped out in 1808.  This firm operated in Carver Street, until it was dissolved in 1823 (when Kirkby, Gregory & Co. occupied the premises).   

In the previous year, Joseph Waterhouse and Dr John Hodgson had formed a new partnership – Waterhouse, Hodgson & Co – and they built a works at Portobello Place.   Joseph had been joined by his son John, who had married Hodgson’s daughter (hence the reference in directories to I. & I. Waterhouse and the mark ‘I & I W & Co).   Joseph Waterhouse died on 2 July 1826, aged 67, and was buried in Ecclesall.  His wife Catherina was buried in the same cemetery after her death on 10 April 1830 (she had died only two days after the death of her son Thomas, a physician).   Joseph and Catherina’s other son, John, remained in partnership with John Hodgson, until the latter’s death on 29 July 1832, aged 69.  Hodgson had built a house which became Bell Hagg Inn.  It became known as ‘Hodgson’s folly’, because of its isolated location on Manchester Road.

In 1836, John Waterhouse and Edward Hatfield registered a silver mark from Portobello Place.  This partnership ended with the death of John Waterhouse on 19 April 1841 at his residence in Winchmore Hill, near London, after six months’ illness.  He was aged 45.  John Sansom – who had married Joseph Waterhouse’s daughter – then became involved in the business, which was styled Waterhouse, Hatfield & Sansom at Portobello Place and Bolt Street, London.  The partnership also had a shop in Dublin, which in 1846 led to a legal dispute with another Dublin-based Waterhouse (see George Waterhouse).   Waterhouse, Hatfield & Sansom successfully defended that  action.  However, the partnership was dissolved in 1848.  Edward Hatfield retired to Scalby, near Scarborough, where he died on 5 May 1864, aged 74.  He left under £4,000.  The firm’s mark was a bird device.