Its not something that you turn on and off, its based on view permissions and being logged in.
If the viewing user is logged in (requires a user_id in order to watch content) AND they can VIEW the content (Item or Category) AND they are not the content owner (content owner can't watch their own content as they get separate types of alerts specific to being the content owner), they will see the watch or unwatch links on item pages and category pages.
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