Watson will star in The Bling Ring, a film based on the true story of a group of six California teens who broke into homes of celebrities including Paris Hilton, Lindsay Lohan and Megan Fox between 2008 and 2009.
The vandals broke into targets homes to steal a total of more than $3m worth of jewellery, clothes and accessories.
Producers said the film would reveal a sobering view of our modern culture.
Im excited about the young cast were assembling, and I look forward to shooting on location here in Los Angeles, Coppola told The Hollywood Reporter.
The film marks Watsons third major project since the end of the Harry Potter series. She has played a wardrobe assistant in My Week with Marilyn and appears in the forthcoming The Perks of Being a Wallflower.