Simpson is still serving his penance in the WAFL after refusing to fly to Sydney as an emergency for the Dockers' round-five clash with the Swans.
The 20-year-old, who was selected with pick No.17 in the 2012 NAB AFL Draft, had previously gone into the bad books for inconsistent efforts at training.
Although Simpson is now back training with the Dockers, it remains unclear when he will be eligible for senior selection.
We’ll support Simpson: Lyon
Walters was himself banished to the WAFL in 2012 after returning poor skinfolds.
The 23-year-old worked diligently to win back the trust of the group, before establishing himself as one of the team's most important players with a standout 2013 campaign.
Walters now wants to see Simpson carve out a similar story, saying there's no better way to make a living than by doing something you love.
"He's the type of kid that does work hard when he wants to but it's the sort of thing where he has to do it multiple times, rather than just for a week or two," Walters said on Monday.
"I struggled with it but now it's time for him to step up and focus on his family.
"With Josh, he needs the tough love.
"But then again he's only young. You have got to sort of massage it in and the sooner he learns the rigours of AFL, the better we are going to be as a team because he's a good player with extreme talent."
Walters is still sidelined after undergoing surgery last month to repair a dislocated tendon in his left ankle.
The mercurial goalsneak was able to ditch the crutches last Thursday but he's still in a moon boot and faces at least 10 more weeks on the sidelines.
Walters is hopeful of returning in time for the finals but it's no guarantee.
"I kind of think it's a big chance," Walters said.
"The physios and docs say I should be back.
"It's going to be hard to get back in, especially fitness-wise.
"But I'm willing to do everything I can to make myself better."
Walters took part in a National Sorry Day event in Perth on Monday and he said the Dockers would proudly don the club's indigenous-themed jumper for Sunday's clash with the Bulldogs at Etihad Stadium.
Fremantle sits in seventh spot with a 5-4 record but its next nine games are against sides who sit ninth or lower on the ladder.
