"Everyone at Neighbours is sad to hear of the passing of our creator, Reg Watson," Jason Herbison, executive producer of the show, said in a statement on Twitter on Friday.
"He was a pioneer of drama, prolific in his output and by all accounts a lovely person to work with. His legacy lives on in Ramsay Street to this day," he added.
Jason Donovan, another actor who found fame on the Aussie soap as heartthrob Scott Robinson, paid tribute to Watson, who was reportedly 93 when he died, writing on Twitter: "Many Australian Entertainment careers have a lot to thank for this man. A legend..."
CNN's Georgia McCafferty contributed to this report.