Ex-England manager Taylor spent two spells with Watford under the chairmanship of famous singer Sir Elton John, taking them from the Fourth Division to the UEFA Cup between 1977 and 1987. After struggling during a three-year tenure in charge of the English national team, Taylor returned to Vicarage Road in 1996. Another successful appointment saw Watford once again rise to the Premier League, after starting in Division Two.
Since leaving in 2001, the now 69-year old has been involved in various capacities, returning as chairman between 2009 and 2011, whilst currently holding the position of life president.
Taylor's legacy has prompted current club officials to rename the Rous Stand - named after former President of FIFA and Watford Boys Grammar School teacher Sir Stanley Rous - in Taylor's honour.
A club statement read: "Watford FC is delighted to announce that it will recognise Graham Taylor OBE by re-naming the Rous Stand in honour of his achievements across two spells as manager at Vicarage Road.
"An official re-naming ceremony will take place towards the start of the 2014/15 campaign – while stadium signage, systems and other items will be updated throughout the close-season."
Upon hearing the news, Taylor expressed his delight at the decision: "I feel truly honoured that Watford would seek to recognise my time at the club in this way.
"As everybody is very well aware, I spent a big part of my working life at the club and as part of the town and its community.
"What we created, among the success on the field of play, was a very special feeling – the memories of which have always remained with me."
Club CEO Scott Duxbury confirmed the logistics of the decision when pressed further: "It's always been our intention to honour one of the club's greatest servants and renaming the Rous Stand is hugely appropriate.
"We intend to permanently reserve two seats, for Graham and his wife Rita, within the directors' seating area in a stand which already contains The Sir Elton John Suite.
"Both men are synonymous with a special time in the club's history, so we feel this is a fitting tribute."
The decision has been held in high regard by much of the Watford faithful, with many believing that an honouring of Taylor's achievements has been a long time coming.