Water company buys N.J. village’s water system for $19M

New Jersey American Water on Thursday signed an agreement with the village of South Orange to purchase its water system for $19.7 million.

The sale, which is expected to be finalized by the second half of the year, will make a number of improvements to the system possible, including the removal of all galvanized service lines and lead by 2031.

“We have been serving South Orange for many years and are proud of the relationships we’ve built within the community,” said Mark McDonough, president of New Jersey American Water. “Our familiarity with the water system will allow us to make needed system improvements quickly, specifically removing all lead and galvanized service lines.”

As part of the agreement, the water company will spend $50 million on improvements in 10 years. Additional improvements include the replacement of water mains, fire hydrants and a standpipe system, as well as the rehabilitation of a reservoir and water sphere.

The sale was approved in a referendum vote in November 2024, with 62% of South Orange residents voting in favor of the acquisition, the company said.

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Nicolas Fernandes may be reached at nfernandes@njadvancemedia.com.