Sustainable watershed management stands at the forefront of global efforts to tackle pressing environmental and socio-economic challenges. This study offers a pioneering assessment of the state of research on Peru's watersheds, integrating geographical, environmental, and socio-economic dimensions. By harnessing cutting-edge bibliometric tools, including Bibliometrix and VOSviewer, and adhering to PRISMA guidelines for a systematic review, this work maps the scientific landscape of watershed management in Peru. Utilizing comprehensive databases such as Scopus and Web of Science, the study identifies and analyses key thematic clusters, revealing an escalating focus on the urgent issues of climate change and urbanization, particularly within the critical Rimac River Basin. This basin, vital to the water supply of Lima, the world's second-largest desert city, faces severe threats from pollution and climate instability. Our findings not only chart the evolution of research in this domain but also spotlight emerging opportunities to modernize water management practices through the integration of climate change models, advanced data monitoring, and artificial intelligence. The study makes a compelling case for a collaborative approach, urging stronger alliances among local communities, research institutions, and international stakeholders to foster more resilient and sustainable watershed management strategies in Peru. This paper provides actionable insights, making it an indispensable resource for policymakers and practitioners aiming to secure Peru's water future.