"Wateree" was enforcing the Monroe Doctrine following the 14 January 1866 Peruvian declaration of war against Spain, and moved south to Arica, Peru (which would later become part of Chile) to avoid a yellow fever epidemic in Callao. The 1868 Arica earthquake struck the city while "Wateree" was in port on 13 August 1868. "Wateree" observed dust from the earthquake and collapsing buildings at 17:20, but the sea remained calm as she sent a boat ashore to offer medical assistance. After the boats were ashore, a series of ten tsunamis struck. The first inward surge reached above the high tide line, and all ships anchored in the harbor went aground in the following outward flow. The following inward flow created a wave which snapped anchor chains and carried "Wateree" inland 3 miles (5 km) north of Arica at 19:20. The accompanying store ship USS "Fredonia" was destroyed, drowning all but two enlisted men and three officers who were on shore. However, on the Wateree the boatswain ashore was the only casualty. "Wateree" was intact and upright, and her crew provided stores and aid to the civilian population of Arica. The ship was considered too far inland to be salvaged, and was sold for $2,775 to Mr. William Parker on 21 November 1868. Her hulk was used as an emergency hospital, an inn, a hospital again, and finally a warehouse. She was eventually completely destroyed by another tsunami on 9 May 1877.