Criticised for his involvement in several on-track incidents last year, the 20-year-old Waters has enjoyed an exemplary start to 2015.
The former Australian Formula Ford Champion has won seven of the season's first eight races to sit 118 points clear at the top of the standings.
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The pair will team up in this year's Pirtek Enduro Cup as the squad aims for its third straight Bathurst win.
“Absolutely, he is ready now,” said Edwards of Waters in a Q&A distributed by the team.
“We got lucky with Chaz as when he was ready we had the ability to place him at DJR (Dick Johnson Racing) for the remainder of the (2013) season.
“Unfortunately there isn't a vacancy for Cam right now but when he gets his chance he will make the most of it.”
Whether Prodrive will have a place in its own stable for Waters next year is currently unclear.
The team recently declared Mostert off-the-market by picking up its option on the 23-year-old, while it also has long-time servant Mark Winterbottom on an ongoing deal.
Third driver David Reynolds and associated sponsor The Bottle-O are both off-contract, providing a potential home for Waters if the entry can be funded.
Adding further to the puzzle is the fact that Prodrive's fourth car – a customer entry for Super Black Racing – currently has no confirmed Racing Entitlements Contract for next season.
Edwards meanwhile has been keen to sing the praises of Waters and the team's Dunlop Series crew.
“It is actually hard to highlight an area where he has been deficient which is a real credit to him and our Dunlop Series crew,” he continued.
“This is his second season with us and while finishing runner-up wasn't a poor effort, I think we underperformed in all aspects in 2014.
“That has obviously motivated everyone and this year we are reaping the rewards.”
Regardless of Waters' position for 2016, Edwards says Prodrive is keen to remain in the Dunlop Series.
The team has a healthy stable of Next Generation chassis at its disposal, which will be eligible for the second-tier next season.
“Being able to run Next Generation cars in 2016 is obviously going to be attractive for main series teams and Dunlop Series teams and drivers that want to be competitive,” he said.
“The next two years will be a transition period for the category but we have a few options as our current FG Dunlop Series entry is very competitive.
“As it stands we could run that next year and a Next Generation car alongside it, or we could run one for a customer or even sell one or two and provide technical support.”