The former manager has agreed to join forces with chief executive Charles Green after accepting a non-executive director role.
Although always just a phone call away for manager Ally McCoist, Rangers assistant-boss McDowall believes having a football man on the board will be invaluable.
He said: "It will reassure a lot of people that Walter is prepared to come back.
"He spoke to Charles at length and decided he's happy with what he saw. That will satisfy a lot of people's concerns.
"It's massive to have someone with football knowledge and experience in the boardroom when they're talking about how to spend money.
"For us, it's the best thing that could have happened. It will help us get the club back to where it once was.
"Having a voice on the board can only help. The non-football people will listen to Walter and I'd like to think they'll back whatever he puts forward.
"The club's trying to build again and we've now got someone guiding it. The club has fallen a long way and we should never forget that.
"It'll take time to get back to where we were. But by putting the right people in the right jobs, we might get there quicker.
"Walter has always been there for us whenever we've wanted to speak with him, but moving forward it is great to have someone with his experience, and passion for the club, on the board."