Walters said ahead of Thursday night's clash with New Zealand that Tedesco - the captain as Australia lifted the trophy four years ago - would have a chance to prove his worth in next Sunday's group-stage game against Fiji in Brisbane.
Walsh - the hero of last year's Ashes whitewash - will don the No.1 jersey at Sydney's Allianz Stadium but, as for whether the Brisbane Broncos star will be first choice later in the tournament, Walters is keeping an open mind.
The Kangaroos coach indicated he had chosen to rest Tedesco and playmaker halfback Sam Walker following their exploits in the Sydney Roosters' NRL grand final win over Newcastle.
"I feel it's in the best interest of the team they get a spell this week and they'll play next week," Walters said on Wednesday.
"To be honest, I haven't decided that (fullback) position yet. That's why we're here, and they'll both get an opportunity.
"They're both Clive Churchill medallists - the last two - so I look at it that way. I'm very fortunate to have both of them in the team.
"They're different players, but I love what they both bring to the team. Teddy's the more experienced custodian and Reece is on the way up as such."
The one drawback to Walsh is his fitness, with Thursday's group-stage opener his first competitive match in close to two months after sustaining an ankle injury in club land.
"He has had a good preparation and there's a few players in that position themselves, so it's good to get them around the group," Walters said.
Walsh will be part of a relatively settled Kangaroos spine, with Cameron Munster at five-eighth and Harry Grant at hooker.
Halfback Mitchell Moses is the only new addition to the key playmaking roles.
Moses was on last year's Ashes tour but didn't take the field, with the Parramatta skipper an understudy to Nathan Cleary, who has missed this World Cup following his compound ankle fracture.
"He's a very influential player, an experienced player, particularly his kicking game around the halves will be invaluable," Walters said, promising every squad member would have game time during the global showpiece.
"He gets his opportunity and I'm sure he's looking forward to taking it as well.
"They (Munster and Moses) are very calm and know what we need to do in different situations."
The Kangaroos have not lost to New Zealand on Australian soil since 2015 and, while the Kiwis have a monster forward pack, Walters insists his side have the firepower to match their trans-Tasman rivals.
"It's a strong New Zealand side, certainly, but I feel like the guys that we have picked in the Australian squad, they're not mugs," he added.
"We've got Origin players, Test players, premiership winners. That's what the World Cup is all about: seeing the best players on the world stage."
New Zealand captain James Fisher-Harris believes the Kiwis possess potentially their "best" pack ever and was straight to the point when asked if they were out to win the World Cup.
"That's the plan," Fisher-Harris said.
The top two teams from Australia and New Zealand's Pool A, which also features the Cook Islands with KL Iro and Valentine Holmes, and the Api Karoisau-captained Fiji, will progress to the semi-finals.
The two group winners from Pool B, comprising England, Samoa and Lebanon, and Pool C's Tonga, Papua New Guinea and France, will complete the semi-final line-up.
The final will be staged at Suncorp Stadium on November 26.
