New Jersey American Water Signs Agreement to Purchase Bound Brook Sewer System

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New Jersey American Water announced today it has signed an agreement to acquire the wastewater collection system of the Borough of Bound Brook, N.J. for $5 million.

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Monday, February 14, 2022
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  • New Jersey American Water announced today it has signed an agreement to acquire the wastewater collection system of the Borough of Bound Brook, N.J. for $5 million.
  • This municipally owned system serves approximately 2,900 customers, most of whom already receive water service from New Jersey American Water.
  • The agreement follows a voter referendum that took place in November 2021, in which nearly two-thirds of Bound Brook voters approved the sale of the system to New Jersey American Water.
  • New Jersey American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.8 million people.


New Jersey American Water announced today it has signed an agreement to acquire the wastewater collection system of the Borough of Bound Brook, N.J. for $5 million. This municipally owned system serves approximately 2,900 customers, most of whom already receive water service from New Jersey American Water. The agreement follows a voter referendum that took place in November 2021, in which nearly two-thirds of Bound Brook voters approved the sale of the system to New Jersey American Water.

“I want to thank the elected officials and residents of Bound Brook for entrusting us to manage and improve their sewer utility and protect the environment from the many risks associated with running a sewer collection system,” said Mark McDonough, president of New Jersey American Water. “Providing water and wastewater service is all we do, and as Bound Brook’s water company for over a hundred years, we are deeply committed to making the needed improvements to provide the community with sewer service that is as safe, reliable and affordable as the water service we provide.”

As part of the acquisition agreement, New Jersey American Water will invest more than $11 million in critical sewer system improvements in the next ten years, while freezing current sewer rates for residents for two years and increasing rates no more than 3 percent annually for the three years after that.

“I am grateful to the voters for recognizing that selling the system to New Jersey American Water is the best solution for our town,” said Bob Fazen, Mayor, Bound Brook Borough. “The sale proceeds will enable us to pay down the Borough’s municipal debt and stabilize, or even potentially reduce, property taxes for our residents. Additionally, New Jersey American Water will be adding the sewer charges onto the existing water bills, which removes the significant burden of customer billing from the Borough’s finance department.”

Bound Brook Council President Abel Gomez added, “In addition to the financial benefits, the sale of our sewer collection system will also allow our Department of Public Works staff the ability to focus on road and public area improvements and other essential projects while not having to manage the daily demands of sewer maintenance and emergency repairs. New Jersey American Water, which has the staffing capacity and expertise to handle the operation of the system, will take that burden off their shoulders.”

This will be New Jersey American Water’s third wastewater acquisition within the company’s water footprint in the last three years, adding a total of more than 7,500 new wastewater customers. The company acquired the 1,800 customer Mount Ephraim wastewater system in 2019 and the 2,900 customer Long Hill Township wastewater system in 2020.

New Jersey American Water anticipates completing the acquisition in the second half of 2022, following approval from the New Jersey Board of Public Utilities.

About New Jersey American Water

New Jersey American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.8 million people. For more information, visit www.newjerseyamwater.com and follow New Jersey American Water on Twitter and Facebook.

About American Water

With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs approximately 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to an estimated 14 million people in 25 states. American Water provides safe, clean, affordable and reliable water services to our customers to help keep their lives flowing.

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