New Jersey American Water, a subsidiary of American Water Works Company, Inc., announced today (2025‑10‑08) that it has completed the purchase of the South Orange Village water system for $19.7 million. The transaction adds roughly 5,000 water‑service customers to the company’s New Jersey footprint and was approved by the New Jersey Board of Public Utilities on September 10, 2025, allowing the subsidiary to provide service directly as of closing.
The acquisition comes with a $50 million infrastructure investment plan that will be deployed over the next decade. Planned upgrades include the replacement of all lead and galvanized steel service lines, modernization of aging water mains and fire hydrants, and rehabilitation of the Crest Drive standpipe and Newstead Watersphere. These improvements target a system that is over 100 years old in some areas and aim to enhance reliability, water quality, and customer service.
Strategically, the deal expands AWK’s presence in a high‑density, high‑growth market and aligns with the company’s broader acquisition strategy to add customers and modernize infrastructure. By integrating the South Orange Village system, AWK strengthens its regulatory portfolio in New Jersey, adds a modest but steady revenue stream, and demonstrates its commitment to investing in aging water infrastructure—key drivers of long‑term earnings growth.
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