How to define an egg shed? Let’s look at the definition of watershed to give the egg shed concept more shape. A watershed is defined by the Environmental Protection Agency as: “The area of land where all of the water that is under it, or drains off of it, goes into the same place”. Based on the definition of a watershed, an egg shed could be defined as: the eggs produced within a certain distance that go to a specific place. That place could be your kitchen.