A method of operating a watercraft is disclosed. The watercraft includes an engine, a jet propulsion system operatively connected to the engine, the jet propulsion system includes a reverse gate, and a steering assembly for steering the watercraft. The method comprises: determining if the steering assembly is turned; sensing an operating parameter of the watercraft, the operating parameter being related to a thrust generated by the propulsion system; determining if the operating parameter of the watercraft is within a predetermined range; and moving the reverse gate to a lowered position when the steering assembly is turned and the operating parameter of the watercraft is within the predetermined range. A watercraft capable of performing the method is also disclosed.