diff --git a/sdk/databasewatcher/azure-resourcemanager-databasewatcher/pom.xml b/sdk/databasewatcher/azure-resourcemanager-databasewatcher/pom.xml
index 5b46abc9625e..f4060273b432 100644
--- a/sdk/databasewatcher/azure-resourcemanager-databasewatcher/pom.xml
+++ b/sdk/databasewatcher/azure-resourcemanager-databasewatcher/pom.xml
@@ -70,5 +70,11 @@
       <version>1.15.3</version> <!-- {x-version-update;com.azure:azure-identity;dependency} -->
       <scope>test</scope>
     </dependency>
+    <dependency>
+      <groupId>com.azure.resourcemanager</groupId>
+      <artifactId>azure-resourcemanager-resources</artifactId>
+      <version>2.48.0</version> <!-- {x-version-update;com.azure.resourcemanager:azure-resourcemanager-resources;dependency} -->
+      <scope>test</scope>
+    </dependency>
   </dependencies>
 </project>
diff --git a/sdk/databasewatcher/azure-resourcemanager-databasewatcher/src/test/java/com/azure/resourcemanager/databasewatcher/DatabaseWatcherManagerTests.java b/sdk/databasewatcher/azure-resourcemanager-databasewatcher/src/test/java/com/azure/resourcemanager/databasewatcher/DatabaseWatcherManagerTests.java
new file mode 100644
index 000000000000..fd4199b36dda
--- /dev/null
+++ b/sdk/databasewatcher/azure-resourcemanager-databasewatcher/src/test/java/com/azure/resourcemanager/databasewatcher/DatabaseWatcherManagerTests.java
@@ -0,0 +1,95 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License.
+
+package com.azure.resourcemanager.databasewatcher;
+
+import com.azure.core.credential.TokenCredential;
+import com.azure.core.http.policy.HttpLogDetailLevel;
+import com.azure.core.http.policy.HttpLogOptions;
+import com.azure.core.management.AzureEnvironment;
+import com.azure.core.management.Region;
+import com.azure.core.management.profile.AzureProfile;
+import com.azure.core.test.TestProxyTestBase;
+import com.azure.core.test.annotation.LiveOnly;
+import com.azure.core.util.Configuration;
+import com.azure.core.util.CoreUtils;
+import com.azure.identity.AzurePowerShellCredentialBuilder;
+import com.azure.resourcemanager.databasewatcher.models.ManagedServiceIdentityType;
+import com.azure.resourcemanager.databasewatcher.models.ManagedServiceIdentityV4;
+import com.azure.resourcemanager.databasewatcher.models.Watcher;
+import com.azure.resourcemanager.resources.ResourceManager;
+import com.azure.resourcemanager.resources.fluentcore.policy.ProviderRegistrationPolicy;
+import org.junit.jupiter.api.Assertions;
+import org.junit.jupiter.api.Test;
+
+import java.util.Random;
+
+public class DatabaseWatcherManagerTests extends TestProxyTestBase {
+    private static final Random RANDOM = new Random();
+    private static final Region REGION = Region.US_EAST2;
+    private static final String RANDOM_PADDING = randomPadding();
+    private static String resourceGroupName = "rg" + RANDOM_PADDING;
+    private DatabaseWatcherManager databaseWatcherManager;
+    private ResourceManager resourceManager;
+    private boolean testEnv;
+
+    @Override
+    public void beforeTest() {
+        final TokenCredential credential = new AzurePowerShellCredentialBuilder().build();
+        final AzureProfile profile = new AzureProfile(AzureEnvironment.AZURE);
+
+        resourceManager = ResourceManager.configure()
+            .withLogOptions(new HttpLogOptions().setLogLevel(HttpLogDetailLevel.BASIC))
+            .authenticate(credential, profile)
+            .withDefaultSubscription();
+
+        databaseWatcherManager = DatabaseWatcherManager.configure()
+            .withPolicy(new ProviderRegistrationPolicy(resourceManager))
+            .withLogOptions(new HttpLogOptions().setLogLevel(HttpLogDetailLevel.BODY_AND_HEADERS))
+            .authenticate(credential, profile);
+
+        // use AZURE_RESOURCE_GROUP_NAME if run in LIVE CI
+        String testResourceGroup = Configuration.getGlobalConfiguration().get("AZURE_RESOURCE_GROUP_NAME");
+        testEnv = !CoreUtils.isNullOrEmpty(testResourceGroup);
+        if (testEnv) {
+            resourceGroupName = testResourceGroup;
+        } else {
+            resourceManager.resourceGroups().define(resourceGroupName).withRegion(REGION).create();
+        }
+    }
+
+    @Override
+    protected void afterTest() {
+        if (!testEnv) {
+            resourceManager.resourceGroups().beginDeleteByName(resourceGroupName);
+        }
+    }
+
+    @Test
+    @LiveOnly
+    public void testCreateDatabaseWatch() {
+        Watcher watcher = null;
+        try {
+            String watchName = "dw" + RANDOM_PADDING;
+            // @embedmeStart
+            watcher = databaseWatcherManager.watchers()
+                .define(watchName)
+                .withRegion(REGION)
+                .withExistingResourceGroup(resourceGroupName)
+                .withIdentity(new ManagedServiceIdentityV4().withType(ManagedServiceIdentityType.SYSTEM_ASSIGNED))
+                .create();
+            // @embedmeEnd
+            Assertions.assertEquals(watcher.name(), watchName);
+            Assertions.assertEquals(watcher.name(), databaseWatcherManager.watchers().getById(watcher.id()).name());
+            Assertions.assertTrue(databaseWatcherManager.watchers().list().stream().findAny().isPresent());
+        } finally {
+            if (watcher != null) {
+                databaseWatcherManager.watchers().deleteById(watcher.id());
+            }
+        }
+    }
+
+    private static String randomPadding() {
+        return String.format("%05d", Math.abs(RANDOM.nextInt() % 100000));
+    }
+}
diff --git a/sdk/databasewatcher/test-resources.bicep b/sdk/databasewatcher/test-resources.bicep
new file mode 100644
index 000000000000..3ff2bac58bec
--- /dev/null
+++ b/sdk/databasewatcher/test-resources.bicep
@@ -0,0 +1,22 @@
+@description('The tenant id to which the application and resources belong.')
+param tenantId string = '72f988bf-86f1-41af-91ab-2d7cd011db47'
+
+@description('The client id of the service principal used to run tests.')
+param testApplicationId string
+
+@description('This is the object id of the service principal used to run tests.')
+param testApplicationOid string
+
+var contributorRoleId = '/subscriptions/${subscription().subscriptionId}/providers/Microsoft.Authorization/roleDefinitions/b24988ac-6180-42a0-ab88-20f7382dd24c'
+
+resource contributorRoleId_name 'Microsoft.Authorization/roleAssignments@2022-04-01' = {
+  name: guid('contributorRoleId${resourceGroup().name}')
+  properties: {
+    roleDefinitionId: contributorRoleId
+    principalId: testApplicationOid
+  }
+}
+
+output AZURE_TENANT_ID string = tenantId
+output AZURE_SUBSCRIPTION_ID string = subscription().subscriptionId
+output AZURE_RESOURCE_GROUP_NAME string = resourceGroup().name
diff --git a/sdk/databasewatcher/tests.mgmt.yml b/sdk/databasewatcher/tests.mgmt.yml
new file mode 100644
index 000000000000..0a6504957b19
--- /dev/null
+++ b/sdk/databasewatcher/tests.mgmt.yml
@@ -0,0 +1,15 @@
+trigger: none
+
+pr: none
+
+extends:
+  template: /eng/pipelines/templates/stages/archetype-sdk-tests.yml
+  parameters:
+    ServiceDirectory: databasewatcher
+    Artifacts:
+      - name: azure-resourcemanager-databasewatcher
+        groupId: com.azure.resourcemanager
+        safeName: azureresourcemanagerdatabasewatcher
+    # Only run tests on Windows to save cost.
+    MatrixFilters:
+      - pool=.*(win).*