New Jersey American Water (NJAW) announced that it has completed its acquisition of South Orange Village’s water system for $19.7 million.
The system serves approximately 5,000 water customer connections, and has been operated and maintained by NJAW since 2016 via a contract with South Orange Village.
On Sept. 10, the New Jersey Board of Public Utilities approved the municipal consent, allowing NJAW to provide water service to South Orange Village customers directly as of the closing of the transaction.
The agreement to purchase the system was approved in a voter referendum in November 2024, in which 62% of South Orange voters affirmed the sale at the ballot box. By integrating the new system into its operations, the company aims to enhance service reliability, advance infrastructure investments and improve operational efficiency.
“The completion of this acquisition reflects our continued commitment to delivering high-quality water service to the residents of South Orange,” said Mark McDonough, president of New Jersey American Water. “With our long-standing familiarity with the system and a $50 million investment plan in place, we are well-positioned to modernize critical infrastructure, remove lead and galvanized service lines, enhance quality and increase reliability — all while delivering excellent customer service to the community.”
Through this agreement, NJAW will invest $50 million in infrastructure improvements within the first 10 years, while keeping rates affordable. Anticipated improvements to the system — which is more than 100 years old in some locations — include identifying and replacing all lead and galvanized steel service lines as well as upgrading aging water mains and fire hydrants.
Additionally, New Jersey American Water is set to replace the Crest Drive Standpipe and rehabilitate the Newstead Watersphere. Further improvements will be identified through a comprehensive analysis of the system, which NJAW will conduct in the near future.
