New Jersey American Water Completes Acquisition of Bound Brook Sewer System

New Jersey American Water recently completed its acquisition of 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. On July 13, 2022, the New Jersey Board of Public Utilities approved the municipal consent allowing New Jersey American Water to provide sewer service to the Bound Brook customers as of the closing of the transaction.

“As Bound Brook’s trusted water provider for over a hundred years, we are happy and honored to now also be their sewer service provider. We are ready to start making the needed improvements to provide the community with sewer service that is as safe, reliable and affordable as the water service we provide,” said Mark McDonough, president of New Jersey American Water.

Bound Brook WW Acquisition_Group.JPGThe agreement to purchase the sewer system was approved by nearly two-thirds of Bound Brook voters in a referendum held in November 2021.  As part of the acquisition agreement, New Jersey American Water committed to invest more than $11 million in critical sewer system improvements in the next ten years.

“Selling the sewer system to New Jersey American Water was 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, and even potentially reduce, property taxes for our residents.”

“In addition to the financial benefits for the borough, transferring the ownership of the Bound Brook sewer system gives 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,” added Bound Brook Council President Abel Gomez.

Residents will receive additional information in the mail from New Jersey American Water in the coming weeks. A new webpage, Bound Brook Wastewater, has also been created on the company’s website at, under Customer Service and Billing.

This is New Jersey American Water’s third wastewater acquisition within the company’s water footprint in the last four 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.