City of Rahway 2026 Water Presentation

The City of Rahway held a public presentation on February 3, 2026, to discuss the potential sale of its municipal water utility to a regulated water company. The presentation detailed the current state of the city's water infrastructure, highlighting the need for significant capital investments estimated at $33 million over the next decade to maintain safety, compliance, and reliability. The city currently serves approximately 8,200 customers and faces rising operational costs, including $1.1 million in water purchase costs due to water quality issues. The proposed sale aims to transfer long-term financial and operational risks to a regulated utility company subject to state oversight by the New Jersey Board of Public Utilities (BPU), which would also be responsible for capital improvements and maintaining affordable rates. The process includes a public bidding phase with a submission deadline of April 1, 2026, followed by a city council recommendation and a voter referendum scheduled for the November 2026 general election. If approved, the sale would proceed with final transaction negotiations and closing over the following 10 to 12 months. The city emphasized transparency, regulatory compliance, and maintaining water quality and affordability throughout the process.