With the outbreak of the First World War during the summer season of 1914, the holiday trade abruptly ended, millions of young men went to the battlefields of Europe and Waterfly's passenger carrying days were over. She was eventually stripped of her fittings and used as a barge to tow boxes between Yarmouth and Lowestoft by Messrs Wenn, Yarmouth boxmakers. Her original port registration was cancelled on 29 April 1919 when she was converted to a "Lighter".
Waterfly ended her days in the mud on Breydon where her remains lie today.