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New Jersey American Water added more customers to its service area with the acquisition of the water system of Shrewsbury Township’s Alfred Vail Mutual Association community. 

The Camden-based utility company finalized the deal April 8. The organization noted that the purchase follows the approval of the state Department of Community Affairs and the New Jersey Board of Public Utilities. 

NJ American Water didn’t immediately disclose financial terms of the deal. The transaction is the second in the state to be completed through the Water Infrastructure Protection Act. 

The first sale under the WIPA was the utility’s $21.8 million acquisition of Egg Harbor City water and sewer systems in 2023. The law permits the sale of municipally owned water or wastewater systems that meet certain criteria, including having a population of less than 270,000. 

The Shrewsbury Township system serves 265 customer connections. 

Under the agreement, NJ American Water will also make several infrastructure investments in the community’s water system, including replacing all lead and galvanized steel service lines, upgrading water meters, replacing aging water mains and more. 

Upgrades on the horizon

Shrewsbury Township Mayor Lester Jennings called the move “a win for our community.” 

“By selling the Alfred Vail Mutual Association water system to New Jersey American Water, we are securing much-needed infrastructure improvements, high-quality service, and affordable rates for our residents,” Jennings said in a statement. 

Ben Morris, vice president of operations for NJ American Water, said the infrastructure upgrades will “enhance quality and increase reliability.” 

The acquisition is one of several NJ American Water has made – or is planning to make – over the past several years, including: 

• March 2025 (pending approval): South Orange Village – water system ($19.7 million)
• November 2024: Borough of Manville – wastewater collection system ($6.5 million)
• June 2024: City of Salem – water and wastewater systems ($18 million)
• October 2023: Borough of Somerville – wastewater collection system ($7 million)
  
• June 2023: Egg Harbor City – water and sewer system ($21.8 million, via the state’s Water Infrastructure Protection Act) 
• February 2022: Bound Brook – wastewater collection system ($5 million)
• October 2020: Long Hill Township – sewage and water treatment system ($12.7 million)
• January 2019: Mount Ephraim – wastewater assets ($1.4 million)

Project updates

The company also recently announced infrastructure projects around its service area:

Camden: $2.5 million investment

Work began in mid-March to replace approximately 6,900 feet of aging water main in the city, as well as fire hydrants, utility-owned service lines and any customer-owned lead or galvanized service line.

Work on the following streets is expected to be complete by the end of June, with final street restorations finished in the winter of 2025:

• Howell Street from High Street to North 27th Street
• Stewart Avenue from County Route 601 to Howell Street
• North 21st Street, North 22nd Street, North 23rd Street, North 24th Street, North 25th Street, and North 26th each from High Street to Howell Street
• Saunders Street from North 26th Street to North 27th Street
• High Street from Howell Street to North 21st Street

Summit: $6.88 million investment

The company said its contractor started work at the beginning of April to replace approximately 2.4 miles of aging water main, as well as fire hydrants, utility-owned service lines and any lead or galvanized customer-owned service line.

Work is expected to be completed by the end of August, with final street restorations finished this fall.

The following streets will be affected:

• Madison Avenue
• Lincoln Avenue
• Lafayette Avenue
• Lowell Avenue
• Webster Avenue
• Gates Avenue
• Montrose Avenue
• Aubrey Street
• Lewis Avenue
• Plain Street
• Weaver Street