A stunning second-half strike from Cian Kavanagh saw Waterford see off Sligo Rovers at the RSC on Sunday afternoon.
This was a huge result for the Blues, as it moves them one point behind Finn Harps, who are in eighth place in the Premier Division table.
Sligo meanwhile, will rue their missed chances, with the defeat meaning they missed out on the opportunity to go level on points with second-place St Patricks Athletic.
Despite the final result, the Bit O'Red dominated this game through Liam Buckley's pass-and-move philosophy, which saw the visitors dominate possession.
A cross from Regan Donelon in the 12th minute nearly made it 1-0 to Sligo, as the ball dropped to a free Mark Byrne inside the area. Unselfishly, the winger squared to Johnny Kenny, who shot first time and forced an excellent save from Matthew Connor.
This was a definite shock to the system for Waterford, as they immediately swapped to a back five when defending, which caused a number of problems for Sligo.
The Blues also improved at the other end and they nearly went ahead when a cross from Jeremie Milambo deflected off Donelon and rolled back towards goal. Luke McNicholas managed to get a hand to it, which forced a corner, and from this Junior Quitirna mishit a volley and Sligo won back possession.
Walter Figueira broke and danced his way through the midfield and shot at goal from the edge of the box. As the ball looked to set sail towards the top corner, Eddie Nolan popped up and cleared it to safety.
Four minutes into the second half, Waterford thought they scored when Anthony Wordsworth blasted into the top corner from an indirect free-kick inside the box. Due to the nature of the set-piece, referee David Dunne signalled for a free out, despite the protests from the Blues.
The Blues' disappointment did not last long, as Kavanagh scored a wonder goal two minutes later. The striker won the ball back in midfield, charged forward, and from 25 yards curled into the top right corner.
Sligo’s response to the goal saw Buckley freshen his team with a number of substitutions.
Colm Horgan, who was brought on with half an hour remaining, nearly scored with this first touch after he knocked a corner from Jordan Gibson towards goal. The ball bounced off the inside of the post and fell into the hands of Paul Martin in a huge moment for the Blues in the game.
The Bit O'Reds quest for an equaliser nearly saw them punished again as Waterford picked off a misplaced pass and Kavanagh broke one-on-one with McNicholas. The striker galloped into an acre of space in front of goal and as he tried to slot the ball to the right of the goalkeeper, McNicholas stretched and saved.
Martin’s performance for Waterford in the closing 10 minutes was heroic as he repeatedly saved the Blues.
One chance saw Romeo Parkes blast the ball towards goal from point blank range and the goalkeeper spread himself, which allowed him to gather while preventing the slightest spill.
Then he dropped low to deny the striker again from another shot inside of the area, which caused a huge roar from the vocal Waterford fans.
Waterford FC: Matthew Connor (Paul Martin 25); Darragh Power, Kyle Ferguson (Georgie Forrest 25), Shane Griffin, Anthony Wordsworth, Cian Kavanagh (Tunmise Sobowale 88), Junior Quitirna (Isaac Tshipamba 82), John Martin, Niall O'Keeffe, Jeremie Milambo (Jack Stafford 68), Eddie Nolan.
Sligo Rovers: Luke McNicholas; Lewis Banks, Jordan Gibson, Niall Morahan, Walter Figueira (Seamus Keogh 63), Mark Byrne (Colm Horgan 63), Shane Blaney, Regan Donelon, David Cawley (Romeo Parks 63), Johnny Kenny (Danny Kane 74), Garry Buckley (Adam McDonnell 74).
Referee: David Dunne