Oklahoma City declined Waters' $1.9 million team option Thursday, making him an unrestricted free agent, Clemente Almanza of USA Today reports.
Waters played in 66 games for the Thunder over the past two years but won't be back for another year, unless he's re-signed at a cheaper price. The 25-year-old averaged 5.2 points and 1.8 rebounds in 12.9 minutes last season.