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Water System Sale

SO ORANGE WATER SYSTEM SALE - FINAL AS OF 10/7/25

Home Posted on March 25, 2024 | Last Updated on November 07, 2025

October 7, 2025 - New Jersey American Water (NJAW) and South Orange Village closed on the sale of the South Orange water system. As of 5pm on October 7, 2025 South Orange water customers are officially being served by NJAW. Visit our Water Information page for more information on how to reach NJAW for service-related issue, billing questions and emergencies. 


On Nov. 4, 2024, South Orange residents voted in favor of a referendum supporting the potential sale of its water system to New Jersey American Water (NJAW). 

Visit the information page here for next steps and more information. 


8/29/24 - South Orange Village Announces Town Halls/Community Discussions

South Orange Village will hold three town halls to allow community members to learn more about the potential sale of the water system and ask their questions directly to the Village elected officials and staff members. There will be two virtual meetings and one in-person meeting on the following dates: 

8/15/24 - Village Council Adopts Ordinance Authorizing Ballot Referendum

At a special meeting on July 29, the South Orange Village Council voted 4-2 to put the question of whether or not to sell the water utility on the ballot this November. Details on the referendum and the sales proposal from New Jersey American Water can be found on the ordinance linked here, and below. The Village Council and staff are developing a public presentation schedule for community discussions, as well as a full communication effort to educate residents and answer questions on the potential sale. The schedule of public presentations will be posted here around the end of August. 


7/18/24 - Special Meeting Announced | July 29, 7pm

South Orange Village held a special meeting of the Village Council focusing on the adoption of an ordinance advancing the sale of the South Orange Water System. The ordinance authorizes a ballot referendum for consideration by voters during the general election on November 5, 2024 to consider the sale of the Village's water system to New Jersey American Water, Inc. 

According to the ordinance, if the voters approve the sale, the Village would then be able to adopt a resolution to proceed with the contract, which would include a commitment from New Jersey American Water to purchase the system for $19,700,000, plus an additional $50 million in infrastructure upgrades over the next 10 years, and the replacement of all lead lines on the utility and customer side. If a majority of voters say no to the ballot question, the Village will retain its water system and will immediately begin a process to increase rates to the extent required to address the need for additional capital improvements, a lead line replacement program and other necessary maintenance initiatives.

“The adoption of this ordinance allows us to move forward and place this question on the ballot to let the public decide,” said South Orange Mayor Sheena Collum, adding, "we'll begin scheduling community conversations after Labor Day and leading up to Election Day."

3/25/2024 - Water Utility Task Force

In September 2022, Village President Sheena Collum established a water utility task force to “evaluate the most efficient and cost-effective structure to deliver high-quality and safe water to the residents and stakeholders in South Orange and, in performing that evaluation, to consider (without limitation) capital investments, consequential water rate(s), staffing, operations, maintenance, alternative ownership structures and potential sale of the utility to a private regulated utility” (Resolution No. 2022-VP04).


The formation of the task force was largely precipitated by three critical issues:

  1. New Jersey American Water indicated that it would no longer continue offering Operations and Management (O&M) for the South Orange Water Utility after the current agreement expires in July 2026.

  2. The cost and financial impact of the state-mandated identification of and replacement of lead/galvanized lines and the direct costs to homeowners.

  3. The long-term overall debt and Capital Improvement Plan, currently at $16.6M.


With the support of Remington & Vernick Engineers, the task force has produced scenarios for the Village, which include the following: Retain the existing water utility and 1) outsource O&M to a third party, 2) provide in-house O&M, or 3) a hybrid of both, or, sell the water utility.


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