Town allowed a two-goal lead to slip from their grasp as Watford netted twice late in the second half to earn a 2-2 draw at Vicarage Road. The Blues had gone ahead through Ian Westlake and then Darren Bent, but with the match looking won, Heidar Helguson and sub Hameur Bouazza hit back.
The Blues lined up 4-3-3 with Pablo Couñago a starter with skipper Jim Magilton dropping to the bench, Jason De Vos taking the captain's armband. With Kelvin Davis (back) and Shane Supple (toe) injured and Town unable to register goalkeeping coach Andy Rhodes in time, the Blues named no keeper sub.
Heavy rain, which would continue throughout the game, made conditions very tricky, while a swirling wind added to the difficulties.
Town's first opportunity came in the 10th minute when Couñago and Tommy Miller worked a one-two inside the area. Keeper Richard Lee blocked, the rebound falling to Shefki Kuqi, whose shot was blocked for a corner.
There was a scare for the Blues eight minutes later when a long ball from Lee saw Helguson and Ardley away beyond the Town defence, although Ardley had appeared to be offside by some distance. Fortunately, a ball across the box towards striker Danny Webber was wayward.
On 21 Kuqi seized on a poor Neil Cox backpass, taking the ball past the keeper but too wide. With a number of players calling for the ball in better positions, Kuqi cut in and shot at Lee, who put the ball out for another corner.
Darren Bent felt he ought to have won a penalty a minute later when he and Dyche clashed as they chased a ball on the edge of the box. Referee Kevin Wright wasn't interested.
Bent was proving a handful from his position wide on the right and gave Lee a scare with a shot at his near post from the edge of the box which the keeper did well to scramble round the post. From the corner Couñago headed wide.
Another Bent shot was saved by Lee with greater ease as Town continued to have much the best of it.
Webber almost seized on an error by De Vos in the 34th minute, the Canadian leaving the ball for Price but with the ex-Manchester United trainee behind him. De Vos got back to stop the striker's shot and Webber put the rebound over the bar.
Watford had another chance a minute or so later when Ardley cut in from the right but his shot was little trouble for Price.
Nine minutes before the break Bent came very close to putting Town in front. The England U21 unleashed a powerful 25-yard shot from the right which cannoned off Lee's right post, the keeper well beaten. Couñago challenged for the rebound but failed to get in a strike.
Town had looked the better side and would have deserved to go in at least a goal up at the break.
No changes for the Blues at half-time and within four minutes of the second period finally scored the goal they had been threatening. Kuqi flicked the ball on and Westlake held off a defender and slipped the ball past Lee into the corner of the net, the youngster celebrating with a Kuqi style dive.
Ardley hit a freekick into a Town wall but in the main it was Town. On 54 Kevin Horlock picked up a yellow card for a foul on sub Ashley Young.
Soon after, Couñago played through Bent on the right, the striker taking the ball into the area but shooting too close to Lee. Bent was sent away again on the hour, this time by Miller, but his shot was too weak to give Lee too much trouble.
But a goal for Bent was only four more minutes in coming. Miller set Town breaking with a ball wide to Bent on the right. Westlake went wide to his right, receiving the ball and cutting inside and laying the ball back to Bent, the frontman striking from the edge of the area and into the corner of Lee's net.
Had Bent not got on the ball Town might have had a penalty with a late tackle having felled Westlake. With the Blues two-up and looking comfortable, Joe Royle switched Pablo Couñago for Dean Bowditch.
However, within two minutes of Town's second goal, Watford had pulled one back and as so often it came from a set piece. Gavin Mahon sent in the corner from the Hornets' left and Heidar Helguson headed home from close in.
The goal unsurprisingly gave the home side a big boost and for the first time their crowd started to make some noise.
On 71 Westlake was booked for a foul on Young and from the freekick, 30 yards out in the centre of goal, Watford would get their equaliser. Ardley's low shot was stopped by Price but the keeper couldn't hold on. Price tried to push the ball away from Bruce Dyer but the ball only ended up at the feet of Hameur Bouazza who gratefully put the ball into the net.
At 2-0 there had seemed no way back for the Hornets but a combination of their tenacity and Town's failure to defend two set pieces had got them on terms.
The Blues set about getting themselves ahead once again and had the better of it during the 19 minutes after Watford's equaliser but without Lee having to make too many big saves.
Miller shot wide from Kuqi's edge of the box knockdown and Bent struck an effort powerfully but an inch or so wide, but the winner just wouldn't come.
Town, still third in the table and now seven league matches without a defeat, fully deserved to be two-up by the middle of the second half and could have had even more goals had Bent in particular taken chances.
As so often defensive frailties gave away two goals, giving Watford a point that they hardly deserved on the overall balance of play and depriving the Blues of what could prove a vital away win.
Town: Price, Diallo, Wilnis, De Vos, Naylor, Miller, Horlock, Westlake, Bent, Kuqi, Couñago (Bowditch 64). Unused: Magilton, Collins, Mitchell, Richards. Att: 15,894.