Removed the config from the init and put it into it's own state. This helps avoid issues where we might need more than one memcached config.

memcached/config.sls

@@ -0,0 +1,13 @@
+include:
+  - memcached
+
+/etc/memcached.conf:
+  file:
+    - managed
+    - template: jinja
+    - user: root
+    - group: root
+    - mode: 644
+    - source: salt://memcached/templates/memcached.conf
+    - watch_in:
+      - service: memcached

memcached/init.sls

@@ -6,16 +6,3 @@ memcached:
     - enable: True
     - require:
       - pkg: memcached
-    - watch: 
-      - file: /etc/memcached.conf
-  
-/etc/memcached.conf:
-  file:
-    - managed
-    - template: jinja
-    - user: root
-    - group: root
-    - mode: 644
-    - source: salt://memcached/templates/memcached.conf
-    - require:
-      - pkg: memcached