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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001340725-10-000004.txt : 20100311
<SEC-HEADER>0001340725-10-000004.hdr.sgml : 20100311
<ACCEPTANCE-DATETIME>20100310200923
ACCESSION NUMBER:		0001340725-10-000004
CONFORMED SUBMISSION TYPE:	D/A
PUBLIC DOCUMENT COUNT:		1
ITEM INFORMATION:		Rule 506
ITEM INFORMATION:		Investment Company Act Section 3(c)
ITEM INFORMATION:		Section 3(c)(7)
FILED AS OF DATE:		20100311
DATE AS OF CHANGE:		20100310
EFFECTIVENESS DATE:		20100311

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Watershed Capital Institutional Partners, L.P.
		CENTRAL INDEX KEY:			0001315929
		IRS NUMBER:				820547075
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		D/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	021-129310
		FILM NUMBER:		10672090

	BUSINESS ADDRESS:	
		STREET 1:		ONE MARITIME PLAZA
		STREET 2:		SUITE 1525
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94111
		BUSINESS PHONE:		(415) 391-8900

	MAIL ADDRESS:	
		STREET 1:		ONE MARITIME PLAZA
		STREET 2:		SUITE 1525
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94111
</SEC-HEADER>
<DOCUMENT>
<TYPE>D/A
<SEQUENCE>1
<FILENAME>primary_doc.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<edgarSubmission>

    <schemaVersion>X0603</schemaVersion>

    <submissionType>D/A</submissionType>

    <testOrLive>LIVE</testOrLive>

    <primaryIssuer>
        <cik>0001315929</cik>
        <entityName>Watershed Capital Institutional Partners, L.P.</entityName>
        <issuerAddress>
            <street1>C/O WATERSHED ASSET MANAGEMENT, LLC</street1>
            <street2>ONE MARITIME PLAZA, SUITE 1525</street2>
            <city>SAN FRANCISCO</city>
            <stateOrCountry>CA</stateOrCountry>
            <zipCode>94111</zipCode>
        </issuerAddress>
        <issuerPhoneNumber>(415) 391-8900</issuerPhoneNumber>
        <jurisdictionOfInc>DELAWARE</jurisdictionOfInc>
        <issuerPreviousNameList>
            <value>None</value>
        </issuerPreviousNameList>
        <edgarPreviousNameList>
            <value>None</value>
        </edgarPreviousNameList>
        <entityType>Limited Partnership</entityType>
        <yearOfInc>
            <overFiveYears>true</overFiveYears>
        </yearOfInc>
    </primaryIssuer>

    <relatedPersonsList>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>n/a</firstName>
                <lastName>WS Partners, LLC</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>One Maritime Plaza, Suite 1525</street1>
                <city>San Francisco</city>
                <stateOrCountry>CA</stateOrCountry>
                <zipCode>94111</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>General Partner</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Meridee</firstName>
                <middleName>A.</middleName>
                <lastName>Moore</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>c/o WS Partners, LLC</street1>
                <street2>One Maritime Plaza, Suite 1525</street2>
                <city>San Francisco</city>
                <stateOrCountry>CA</stateOrCountry>
                <zipCode>94111</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Kevin</firstName>
                <middleName>D.</middleName>
                <lastName>Katari</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>c/o WS Partners, LLC</street1>
                <street2>One Maritime Plaza, Suite 1525</street2>
                <city>San Francisco</city>
                <stateOrCountry>CA</stateOrCountry>
                <zipCode>94111</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Qazi Munir</firstName>
                <lastName>Alam</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>c/o WS Partners, LLC</street1>
                <street2>One Maritime Plaza, Suite 1525</street2>
                <city>San Francisco</city>
                <stateOrCountry>CA</stateOrCountry>
                <zipCode>94111</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Erin</firstName>
                <middleName>C.</middleName>
                <lastName>Ross</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>c/o WS Partners, LLC</street1>
                <street2>One Maritime Plaza, Suite 1525</street2>
                <city>San Francisco</city>
                <stateOrCountry>CA</stateOrCountry>
                <zipCode>94111</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Rachel</firstName>
                <middleName>M.</middleName>
                <lastName>Steinman</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>c/o WS Partners, LLC</street1>
                <street2>One Maritime Plaza, Suite 1525</street2>
                <city>San Francisco</city>
                <stateOrCountry>CA</stateOrCountry>
                <zipCode>94111</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
    </relatedPersonsList>

    <offeringData>
        <industryGroup>
            <industryGroupType>Pooled Investment Fund</industryGroupType>
            <investmentFundInfo>
                <investmentFundType>Hedge Fund</investmentFundType>
                <is40Act>false</is40Act>
            </investmentFundInfo>
        </industryGroup>
        <issuerSize>
            <aggregateNetAssetValueRange>Decline to Disclose</aggregateNetAssetValueRange>
        </issuerSize>
        <federalExemptionsExclusions>
            <item>06</item>
            <item>3C</item>
            <item>3C.7</item>
        </federalExemptionsExclusions>
        <typeOfFiling>
            <newOrAmendment>
                <isAmendment>true</isAmendment>
                <previousAccessionNumber>9999999997-09-013933</previousAccessionNumber>
            </newOrAmendment>
            <dateOfFirstSale>
                <value>2002-05-01</value>
            </dateOfFirstSale>
        </typeOfFiling>
        <durationOfOffering>
            <moreThanOneYear>true</moreThanOneYear>
        </durationOfOffering>
        <typesOfSecuritiesOffered>
            <isPooledInvestmentFundType>true</isPooledInvestmentFundType>
        </typesOfSecuritiesOffered>
        <businessCombinationTransaction>
            <isBusinessCombinationTransaction>false</isBusinessCombinationTransaction>
            <clarificationOfResponse></clarificationOfResponse>
        </businessCombinationTransaction>
        <minimumInvestmentAccepted>10000000</minimumInvestmentAccepted>
        <salesCompensationList>
            <recipient>
                <recipientName>Gallatin Capital LLC</recipientName>
                <recipientCRDNumber>124738</recipientCRDNumber>
                <associatedBDName>None</associatedBDName>
                <associatedBDCRDNumber>None</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>444 Madison Avenue</street1>
                    <street2>29th Floor</street2>
                    <city>New York</city>
                    <stateOrCountry>NY</stateOrCountry>
                    <zipCode>10022</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <state>AK</state>
                    <state>CA</state>
                    <state>DC</state>
                    <state>FL</state>
                    <state>GA</state>
                    <state>KY</state>
                    <state>MD</state>
                    <state>MI</state>
                    <state>MO</state>
                    <state>NJ</state>
                    <state>NY</state>
                    <state>NC</state>
                    <state>OH</state>
                    <state>PA</state>
                    <state>TX</state>
                    <state>VT</state>
                    <state>VA</state>
                    <state>WA</state>
                </statesOfSolicitationList>
            </recipient>
        </salesCompensationList>
        <offeringSalesAmounts>
            <totalOfferingAmount>Indefinite</totalOfferingAmount>
            <totalAmountSold>1081335382</totalAmountSold>
            <totalRemaining>Indefinite</totalRemaining>
            <clarificationOfResponse></clarificationOfResponse>
        </offeringSalesAmounts>
        <investors>
            <hasNonAccreditedInvestors>false</hasNonAccreditedInvestors>
            <totalNumberAlreadyInvested>54</totalNumberAlreadyInvested>
        </investors>
        <salesCommissionsFindersFees>
            <salesCommissions>
                <dollarAmount>5719</dollarAmount>
            </salesCommissions>
            <findersFees>
                <dollarAmount>21317</dollarAmount>
            </findersFees>
            <clarificationOfResponse>Selling agent receives 20% of management fees and 18% of  incentive allocations/performance fees received by General Partner and attributable to interests sold by Selling Agent. Current offering began prior to 3/15/09; item 15 reflects requested info comm</clarificationOfResponse>
        </salesCommissionsFindersFees>
        <useOfProceeds>
            <grossProceedsUsed>
                <dollarAmount>0</dollarAmount>
            </grossProceedsUsed>
            <clarificationOfResponse></clarificationOfResponse>
        </useOfProceeds>
        <signatureBlock>
            <authorizedRepresentative>false</authorizedRepresentative>
            <signature>
                <issuerName>Watershed Capital Institutional Partners, L.P.</issuerName>
                <signatureName>Meridee A. Moore</signatureName>
                <nameOfSigner>Meridee A. Moore</nameOfSigner>
                <signatureTitle>Senior Managing Member of the General Partner</signatureTitle>
                <signatureDate>2010-03-10</signatureDate>
            </signature>
        </signatureBlock>
    </offeringData>
</edgarSubmission>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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