I don't think so. It's a geographical term to determin / predict waterfall and water basins / catchment areas as determined (largely) by mountain ranges.
yes, if you're in the watershed of the Rockies, for instance, water falling on one side of it flows down towards the Gulf of Mexico; on the other side it flows to the Pacific. So a watershed is a significant border, like that between clean TV and rude TV.
The 'shed' bit means 'falling away', like a tree shedding leaves.