New Jersey American Water signed an agreement to acquire the South Orange Village water system for $19.7 million, the Camden-based utility announced March 6.

In a November 2024 referendum vote, 62% of residents approved the sale of the more than 100-year-old system, which serves approximately 5,000 customer connections, according to NJ American Water.

As part of the agreement, NJ American Water will invest $50 million in infrastructure improvements within the first 10 years of ownership, including:

• Replacing lead and galvanized steel service lines
• Replacing all 4-inch water mains and associated fire hydrants;
• Replacing the Crest Drive Standpipe;
• Rehabilitating the Main Reservoir and the Newstead Watersphere

Subject to approval from the New Jersey Board of Public Utilities, the deal is expected to close in the second half of 2025.

NJ American Water President Mark McDonough said the company has served South Orange residents “for many years” through operations and maintenance as well as bulk water contracts.

“Our familiarity with the water system will allow us to make needed system improvements quickly, specifically removing all lead and galvanized service lines,” McDonough added, thanking residents for entrusting the company with the system.

South Orange Village Mayor Sheena Collum said the sale “is in the best interest of South Orange residents.”

“This agreement ensures that our community will receive the investment needed to modernize our water infrastructure and eliminate lead and galvanized service lines, while also providing the expertise and resources of a trusted, regulated utility.”

Adding to its customer base

The South Orange agreement follows several similar deals. That includes most recently closing on a $6.5 million acquisition of the Borough of Manville’s wastewater collection system. Others have included:

• 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)

Elsewhere in NJ

The company also announced other projects around the state. A $3.2 million investment in Dunellen will replace approximately 5,770 feet of aging water main. Work was scheduled to begin March 3.

Contractors will also replace 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. Final street restorations should finish in the fall of 2025.

NJ American Water also began the annual flushing of its water distribution system, which involves opening fire hydrants in a specific area to create increased water flows. The process will extend through the fall.

Flushing helps “clean out any mineral deposits or sediment that may have built up over time inside the pipes,” said NJ American Water Vice President of Operations Ben Morris.

While water mains are cleaned, customers may notice short periods of low water pressure or discolored water. The company recommends running the cold water until it is clear.

NJ American Water will notify customers when flushing takes place in their area through its notification system. To make sure customers receive these updates, the company encourages them to update their contact information and preferences in their MyWater account. Non-customers can sign up for alerts at awcodered.com or by texting WATER to 99411.