To make the jalapeno simple syrup, combine water, sugar, and sliced jalapeno pepper in a saucepan over medium heat. Stir until sugar dissolves and mixture comes to a boil. Reduce heat and simmer for 5 minutes. Remove from heat and let cool. Strain out jalapeno slices and transfer syrup to a jar or bottle.
Rim a highball glass with salt by rubbing a wedge of lime around the rim, then dipping the glass in a small dish of salt.
Fill the glass with ice.
In a shaker, combine the tequila, lime juice, watermelon juice, and jalapeno simple syrup.