New Jersey American Water (NJAW) on Wednesday announced the completion of its $19.7 million acquisition of the water system serving South Orange Village. The transaction, which adds approximately 5,000 water customer connections, formalizes an arrangement under which NJAW has already been operating and maintaining the system since 2016.
The acquisition received final approval from the New Jersey Board of Public Utilities (BPU) on Sept. 10, 2025, allowing NJAW to begin providing direct water service to customers. The sale was overwhelmingly approved by South Orange voters in a November 2024 referendum, with 62% of residents supporting the agreement.
$50 million infrastructure commitment
As part of the deal, New Jersey American Water has committed to investing $50 million in infrastructure improvements within the first 10 years of ownership. This significant capital investment is aimed at modernizing the system, some parts of which are over 100 years old, while keeping customer rates affordable.
“The completion of this acquisition reflects our continued commitment to delivering high-quality water service to the residents of South Orange,” Mark McDonough, president of New Jersey American Water said. “With our longstanding 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.”
Anticipated improvements include:
- Identifying and replacing all lead and galvanized steel service lines.
- Upgrading aging water mains and fire hydrants.
- Replacing the Crest Drive Standpipe and rehabilitating the Newstead Watersphere.
Additional improvements will be identified through a comprehensive system analysis.
Long-term benefits for residents
South Orange Village Mayor Sheena Collum praised the closing, calling it the “culmination of the thoughtful planning and collaboration” between the Village Council, staff, and residents.
“Our residents deserve a modern water system backed by the expertise and resources of a trusted utility, and together, we have determined this is the best path forward,” Collum said. “We are confident this partnership will deliver long-term benefits and peace of mind for our community.”
South Orange residents will now have access to New Jersey American Water’s customer benefits, including the online account management portal, MyWater, and the H2O Help to Others program for qualifying customers needing bill assistance.
This marks New Jersey American Water’s eighth acquisition in the last five years, adding more than 26,000 new water and/or wastewater customers across the state.
