Watersheds are threatened by numerous issues, such as climate change, population growth, urban expansion, and industrial development. These issues are complex and interconnected, and effectively addressing them requires integrating values, knowledge, and expertise of various governing bodies, local organizations, and community members, all of whom have their own viewpoints and priorities. The current study employs a participatory approach and systems lens to engage different stakeholders in the complex watershed issues and management approaches. Using participatory modeling and semi-quantitative scenario analysis techniques, the study identifies relationships among watershed values, challenges, and strategies, as well as the dynamics of these relationships. A fuzzy cognitive map was developed, which consists of 53 nodes (i.e., 13 values, 12 challenges, and 28 strategies), and 113 connections. Biodiversity, mental health, and sense of place emerged as key values due to their strong centrality in the system, while challenges like invasive species and urban sprawl were found to threaten them significantly. Strategies such as establishing and expanding greenspace, community stewardship, and governance-based interventions were identified as critical for addressing watershed challenges and enhancing watershed values. The scenario analysis revealed that Governance-based strategies focus on resource allocation, participatory governance, and institutional collaboration to address watershed management challenges, while engagement-based strategies emphasize environmental communication and public awareness. The study demonstrates the potential participatory modeling and semi-quantitative analysis techniques can have for integrating both tangible, measurable values and intangible, difficult-to-measure values into planning and policymaking. The research reinforces the idea that local governments play a critical role in fostering inclusive and collaborative watershed management strategies.