UFC officials announced the 115-pound contest on Monday. The pay-per-view event will take place at MGM Grand Garden Arena. A featherweight title unification bout between Jose Aldo (25-1) and Conor McGregor (18-2) will headline.
Torres (6-0) is coming off a unanimous decision win against Angela Hill in June. She had a relatively disappointing showing on "The Ultimate Fighter 20" reality series last year but boasts an official record of 2-0 in the UFC.
Waterson (13-4) is a former atomweight titleholder at Invicta FC. The 29-year-old strawweight would likely have been on TUF 20 had she not been obligated to defend her belt in the all-female promotion. Waterson is 7-1 in her past eight fights.
ESPN.com ranks Torres and Waterson the Nos. 5 and 10 strawweights in the world, respectively. Both come out of highly respected camps, as Torres is a member of American Top Team in Coconut Creek, Florida, while Waterson trains out of Jackson-Winkeljohn MMA in Albuquerque, New Mexico.