"She's tough, she's been up and back before," Waterhouse said.
"The trip is gruelling. They don't stop anymore, they go straight through.
"You try driving without stopping and then try and perform the next day, it's hard on the horses."
Lady Of Camelot will be aiming to become the seventh filly to capture the Coolmore Stud Stakes since the race was granted Group 1 status in 2006.
The Coolmore Stud Stakes is considered a stallion making race, but it also takes a special filly to win, with the past three being Sunlight (2018), September Run (2020) and In Secret (2022).
Waterhouse says Lady Of Camelot will run a 'terrific' race.
"She beat the boys in the Slipper," Waterhouse said.
"She ran a very good race in the Moir at The Valley, where Zac Lloyd jumped and the other horse that jumped (Mornington Glory) won the race, but she got a bump on the corner and that upset her.
"She went back to Sydney to run in The Everest and ran a very good race there."