When Josie was born to Sharlene, her mother told her that she was Floydd Watts' daughter. However, when Josie returned to Bay City she found out that she was really Russ Matthews' daughter that resulted from a rape. When Josie did return to Bay City, she got involved with Matthew Cory. Josie and Matthew were engaged to be married, but Josie's modeling and acting career emerged, and Josie called off the marriage. She left town. When Josie returned to Bay City, she was devastated over the death of her mother, Sharlene. Josie was horrified to see that John Hudson, her stepfather, already moved on with another lady, Kelsey Harrison. What Josie did not know was that her mother was alive and well and under the personality of Kate Baker. Eventually, Josie and John helped guide Kate back to Sharlene.
While Josie was away from Bay City, her acting career diminished and was forced to become a prostitute just like her mother. However, Ian Rain saved her from a john and her madam. Ian and Josie shared a wonderful relationship together, until Josie decided to become a cop. Ian did not want to see Josie in such danger and broke off the relationship. Josie met her current husband at the police academy. Josie was at the top of her class at the police academy. Josie also helped Gary Sinclair through his drinking problem. The two eventually became lovers. However, Gary's ex-partner, Blair Baker, returned to town to destroy Gary and his new life. Josie offered Blair to move in with her, and she accepted. Blair slowly moved in to destroy Josie, but later revealed to Gary and Josie her true motives. Josie was shot by Blair and lost an ovary in the process. Josie began to have doubts about her performance on the job and wanted to resign, but the police captain did not want her to.
Josie was kidnapped by Cody Murcer and Fairfax Newman. At Josie's wedding to Gary, Cody shot Josie's mother, Sharlene, leaving her paralyzed. Josie and Gary were eventually married and conceived a child. However, Josie lost her child when she took a fall from a building while trying to catch Toni's rapist. Gary and Josie had a second chance at parenthood when Rain, a homeless girl, came to town. The two wanted to adopt Rain, but the grandmother came to town to claim Rain. The two were devastated beyond belief. Josie left town shortly for a F.B.I. training session and found out some information about Gary's family.
Josie is working with Gary's brother, Cameron, on a FBI case to bring down Carl Hutchins. However, her plan didn't succeed when Carl was shot. When Amanda was kidnapped by Guthrie, she, Gary, and Cameron went after her. After believing that Gary and Amanda had perished in an explosion with Guthrie, they made love on the beach. But Amanda and Gary weren't dead after all, and Amanda saw the two of them together, but has agreed not to tell Gary. Josie has just learned that she's pregnant as a result of that one-night stand. She is keeping the truth about that night from Gary, but has no idea that Cindy Harrison overheard her and Cameron discussing it and plans to tell Gary herself.
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