Derry City - 1 Waterford Utd. - 2:National League Report and preview: Derry City's future in the Premier Division is under real threat following this disastrous defeat at the Brandywell last night.

Having failed to win a league match since June 12th, Derry had been expected to overcome the "blues" following their 5-1 demolition of Jimmy McGeough's side in May. But it was clear that Waterford had learned from the experience.

Having packed midfield, with Daryl Murphy alone up front, the visitors broke regularly and caused their hosts no shortage of problems.

Waterford threatened with great pace and they went close in the ninth minute when Murphy's header crashed off the base of the post.

But six minutes later Derry should have broken the deadlock when Michael Holt sent Sean Hargan clear, but Waterford keeper, Dan Connor, saved well, blocking the shot with his legs.

After the break Waterford stunned their hosts with the opening goal after 52 minutes when centre-half David Mulcahy ghosted in at the back post to head a corner firmly home.

The home side eventually got their act together and equalised in the 66th minute. Gareth McGlynn's perfect cross found the head of Peter Hutton who beat Connor from 12 yards.

Waterford bounced back five minutes later when Alan Reilly gave Alan Gough no chance in the 71st minute.

Stunned, Derry tried hard to level matters with substitutes Liam Coyle and Sean Friars going close as the visiting defence stood firm.

DERRY CITY: Gough; Paddy McLaughlin, Hutton, Clery; McCallion, McGlynn, Doherty, Martyn, Hargan; Holt, Beckett. Subs: Coyle and Deery for Beckett and Martyn (both half-time); Friars for Clery (57 mins.)

WATERFORD UNITED: Connor; McLoughlin, Mulcahy, Breen, Watters; Kelly, O'Brien, Clifford, Fenn, Sullivan; Murphy. Subs: Barnes for Fenn (91 mins), Mallon for O'Brien (92 mins.)

Referee: John McDermott (Dublin).