The 30-year-old woman appeared by audiovisual link at Invercargill High Court today, where she faced a charge of murder.
A 23-year-old man also pleaded not guilty to a charge of accessory after the fact to murder, in relation to Mr Watene's death.
Both had interim name suppression granted and their pleas were entered through their defence lawyers.
Justice Robert Osborne remanded the man on bail and the woman in custody for a case review hearing on October 27.
A trial date for the case was also set for August 9, next year. It is believed it could take three weeks.
The body of Mr Watene (40) was found by Police at Longwood Forestry Block in May - about a month after he went missing.
Early this month, Southland Police arrested and charged two people in relation to the murder of Mr Watene.
On the occasion, Det Snr Sgt Harvey thanked the Otautau community for their support and assistance over the four months of investigation.
