The Argos punter/kicker was honoured Thursday during the CFL's awards banquet at the Queen Elizabeth Theatre.
Waters was named the award winner in voting conducted by the Football Reporters of Canada and nine CFL head coaches.
The 27-year-old Waters's season began on a sombre note when his best friend, Tait Hendrix, died in a motorcyle accident during training camp.
Waters wore No. 34 this season — Hendrix's high school number — and dedicated the '14 season to his friend's memory.
The six-foot, 180-pound Waters led the CFL in scoring (192 points), field goals tried (52), made (47), punting (47.7 yards) and kickoffs (65.2 yards).
Lirim Hajrullahu of the Winnipeg Blue Bombers was the award finalist.
The Bombers' rookie made 40-of-46 field goals (87 per cent) while posting a 43.8-yard punting average 63.5-yard kickoff average.