Watson was convicted of murdering Ben Smart and Olivia Hope in the Marlborough Sounds in 1998 and was sentenced to life in prison with a minimum non-parole period of 17 years.
He has always maintained his innocence and has spent more than 25 years behind bars.
Watson appeared before the parole board on Wednesday, his fifth attempt at parole, in a hearing that lasted for more than six hours, but ran out of time for everyone present to be heard.
His lawyer Kerry Cook said the hearing was unfairly truncated given the time pressures and he did not have adequate opportunity, particularly to lead further evidence from the psychologist called by Watson.
Counsel for Corrections took the position that the board should continue with the hearing, complete seeing Watson and his family and then give a decision.
However, given board chair Sir Ron Young is retiring at the end of March, the board agreed to abandon the previous hearing and set a date for a new one.
