| O'Callaghan joins as part a back room overhaul at the National League Division Two side, with former England Coach Joe Lydon taking the role of performance consultant.
The Wales Schools cap, who most recent job was as assistant coach to the Spanish national team, enjoyed a long and distinguished playing career at both Aberavon and Bridgend, before moving behind the scenes as the Wizards' Director of Rugby and Head Coach.
Lydon, who played 30 rugby league internationals for Great Britain, served as the first-ever Performance Director with the Rugby Football League before moving to the RFU in 2000. Since the switch, he has coached various England squads, including the England U19s and Sevens, before becoming the Backs Coach of the Senior squad in 2004.
Waterloo President and Director of Rugby Colin Fisher, a former Scottish International, is hoping the experience and reputations of these two men can help propel Waterloo out of the third tier of English rugby.
"The appointments of Joe and Chris bring proven, world-class coaching talent to Waterloo," he said.
"Both have extensive expertise in playing, coaching and running sides which will help raise the profile of the club, attract high quality players, and deliver results on the field.
"Their appointment is part of a longer-term strategy, as we look to assemble a squad to play for a three to five-year period and win promotion to Division One."
Lydon, a RL Lion, added: "I am looking forward to getting involved at the grass roots level and helping to build the reputation of a club that has helped to develop many great players such as Ben Kay, Austin Healey, Paul Grayson and Kyran Bracken."
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