He is one of 12 referees from seven nations appointed for the 2007 tournament and will be one of three newcomers to the finals, along with Wayne Barnes (England) and Marius Jonker (South Africa). Watkins, meanwhile, has been selected among the 13 touch judges.
"I am delighted to have been selected for this honour and will be proud to represent Wales at the World Cup," said 35-year-old Owens.
"It is a fantastic opportunity which I know every referee would cherish and I will be determined to give my best."
The Pontyberem official will warm-up for the Rugby World Cup by refereeing his first Tri-Nations Test on July 21st, when New Zealand host Australia in Auckland in a Bledisloe Cup match. A week earlier he will be in Christchurch as a touch judge for the clash between the All Blacks and Springboks in a game due to be handled by Australia's Stuart Dickinson.
Owens will also see action in the World Cup warm-up matches in August when he runs the line in the two matches between England and France before controlling the game between Ireland and Italy at Ravenhill on August 24th.
At the Rugby World Cup, he will make his debut in Lyon on September 11th when Argentina face Georgia, will head to Edinburgh for the game between Scotland and Romania seven days later and will complete his Pool stage assignments in Montpellier on September 23rd when Australia meet Fiji. He will also be the No.1 tough judge for France v Georgia in Marseilles and the fourth official at three other games.
Watkins will also be busy at his first Rugby World Cup, acting as touch judge in six Pool matches and TMO in three others. The 43-year-old Maesteg official, who will be in charge of the Konica Minolta Cup final at the Millennium Stadium this weekend, will also see action during the summer.
He will be a touch judge for the game between South Africa and Samoa in Johannesburg on June 9th and then for the Tri-Nations test between the Springboks and Australia in Cape Town on June 16th. A week later he will be the TMO for the Tri-Nations Test in Durban between South Africa and New Zealand.
"This is fantastic for Nigel and Hugh and is an honour they have both worked hard for and fully deserve," said WRU Manager of Match Officials, Bob Yeman.
"To be chosen as an official at the Rugby World Cup means you are amongst the very best around and there can be no greater achievement than that.
"I know they will both be a credit to Wales because we have watched them develop through the levels and monitored their progress closely. They are both young men which shows that here in Wales we now have the systems in place to fast-track talent to the very top.
"Youngsters are realising that refereeing is a challenging and exciting option with a career structure which offers fantastic opportunities around the world."
Another young Welsh official, 33-year-old Bro Myrddin school teacher Tim Hayes, is also climbing the refereeing ladder after recently breaking onto the international scene. He has been given two Tests in Japan in the Pacific Nations tournament when the Cherry Blossoms take on Samoa in Sendai City on June 16th and the Junior All Blacks in Tokyo on June 26th.
Today's announcements come the weekend after James Jones, from Gorseinon, took charge of the final of the prestigious IRB U19 World Championships between New Zealand and South Africa in Belfast.
Wales now boasts 180 referees qualified at Level Three who officiate at Asda League level and above, below that there are 370 referees at Level Two and 1,100 junior referees at Level One ranging in age from 16 to 70.
"We all know how a good referee can transform a game of rugby and Nigel and Hugh are amongst the best around. I am proud of them both and fully confident they richly deserve the honour which the IRB is giving them," said WRU Group Chief Executive Roger Lewis.
"Our referees have a worldwide reputation for fairness and efficiency which will now be recognised again at the biggest rugby tournament there is."
Wales has provided referees at each Rugby World Cup competition since 1987, when Clive Norling and Derek Bevan represented the principality.
Bevan, who still holds the world record for referees with 44 Tests, went on to referee at four global tournaments, including the final of the 1991 competition between England and Australia at Twickenham.
Other Welsh referees who have made it onto the Rugby World Cup stage include Clayton Thomas, Nigel Williams, Nigel Whitehouse and Les Peard.
Wales will have South African and New Zealand referees in charge of their two Tests in Australia this summer - Jonathan Kaplan and Paul Honiss - before meeting up with Frenchman Joel Jutge at Twickenham in August for the first of their three Rugby World Cup warm-up matches.
The English duo of Chris White and Wayne Barnes will then be at the Millennium Stadium for the games against Argentina and France.
At the Rugby World Cup, Ireland's Alain Rolland will control Wales's opening game against Canada in Nantes. New Zealand's Steve Walsh will be in the middle at the Millennium Stadium for the Pool clash with Australia, while the games against Japan and Fiji will be refereed by Jutge (France) and Dickinson (Australia).