New Jersey American Water announced on Thursday that it has officially signed an agreement to acquire the Hopewell Borough water system for $6.4 million, marking a major turning point for the municipality’s utility infrastructure. The deal follows a decisive referendum in November 2025, where 58% of voters approved the privatization of the system, which currently serves approximately 880 customer connections.
The transition is expected to be seamless, as New Jersey American Water has served as the borough’s primary bulk water supplier for several years. Upon receiving final approval from the New Jersey Board of Public Utilities (NJ BPU)—anticipated in the first half of 2026—the company will take full ownership and begin a massive modernization campaign.
As a central component of the acquisition, New Jersey American Water has pledged to invest $7 million in capital improvements within the first five years of ownership. This investment is aimed at addressing the borough’s aging underground assets and meeting stringent new environmental standards.
Priority projects include:
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Lead Line Removal: Identifying and replacing all utility-owned and customer-owned lead and galvanized steel service lines by 2031.
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Water Main Modernization: Systematic replacement of aging, leak-prone water mains to improve pressure and fire protection.
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PFAS Remediation: Immediate mitigation of “forever chemicals” (PFAS/PFOS) by utilizing the company’s regional interconnection.
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System Analysis: A comprehensive, ground-up audit of the entire distribution network to identify long-term resiliency needs.
For the Borough of Hopewell, the sale is a strategic move to stabilize its long-term financial health. According to Mayor Ryan Kennedy, the $6.4 million purchase price will allow the borough to retire its municipal water debt and reinvest nearly $1 million in annual savings (previously spent on debt service) into other community priorities.
Additionally, residents are expected to see a significant reduction in their monthly bills. Analysts suggest that most Borough users will see water rates approximately 36% lower under New Jersey American Water’s regulated rate structure compared to the projected increases required if the system remained municipal.
“Moving forward with this agreement allows our community to receive the critical investments we need to modernize our water infrastructure while reducing our water rates. This is not just progress; it’s the start of our ongoing commitment to sustainability and affordability,” Kennedy said.
“We are committed to delivering the high-quality service our customers deserve,” Mark McDonough, president of New Jersey American Water said. “We are honored to earn the trust of Hopewell Borough.”
