Watring worked at Creekside Elementary School in Durham as a teacher's aide. The victim is a student at the school.
Despite her arrest, prosecutors said Watring continued to contact the boy after she was released on bail and added an additional obstruction of justice charge.
Thursday, Watring's attorney said the contact was actually a violation of the terms of her bond, and the obstruction charge was dismissed.
Meanwhile, investigators are waiting for more lab results in the case.
According to an affidavit for a search warrant, the 10-year-old boy told Durham County Sheriff's Office investigators that he and Watring had intercourse twice at her home.
Investigators also said Watring gave the boy a cell phone so they could exchange text messages.
The search warrants say school administrators first became suspicious of Watring - who taught drama and dance at the school - after intercepting a note written by the boy.