City boss Pep Guardiola makes just the one change from the side that demolished Liverpool 5-0 a week ago and sticks with the 4-1-3-2 formation that delivered a 4-0 Champions League victory at Feyenoord just three days ago.
Sergio Aguero and Gabriel Jesus continue their prolific partnership up front, having found the net five times in the last two games, while Sterling comes in for Bernardo Silva alongside Kevin De Bruyne and David Silva in attacking midfield.
Ederson continues between the sticks despite being forced off against the Reds a week ago, while Kyle Walker, Nicolas Otamendi, John Stones and Benjamin Mendy are in the back four, with Fernandinho in the holding role.
For the hosting Hornets, meanwhile, Marco Silva makes two defensive changes following the 2-0 victory at Southampton last weekend as he looks to extend a run which ranks as the club's best unbeaten start in the top flight since 1951.
Daryl Janmaat came off the bench to score against the Saints and is rewarded with a start at right-back today, with Kiko Femenia missing out, while Adrian Mariappa is preferred to Younes Kaboul as centre-half pairing for Christian Kabasele.
Watford: Gomes; Janmaat, Mariappa, Kabasele, Holebas; Chalobah, Doucouré; Carrillo, Cleverley, Richarlison; Gray
Subs: Karnezis, Wague, Zeegelaar, Capoue, Pereyra, Success, Deeney
Manchester City: Ederson; Walker, Otamendi, Stones, Mendy; Fernandinho; Sterling, De Bruyne, Silva; Aguero, G Jesus
Subs: Bravo, Delph, Mangala, Sane, Danilo, Gundogan, Bernardo
Keep up with all of the action from Vicarage Road this afternoon with Sports Mole's live text commentary here.