Guarding Our Common Good: Why Privatizing Water Isn't the Answer

Knowledge is power-understanding how our water is sourced, treated and delivered not only empowers us but also helps us protect this essential, sacred resource from mismanagement and privatization. Once water is privatized, there is no more local control of the water by the municipality. From documented experiences of rate hikes and poor service, water privatization should be an absolute last resort. Water privatization is on the ballot in several New Jersey municipalities this coming general election on November 5, 2024 and we are sharing a brief update on a couple.

In Hopewell Borough, a petition from concerned residents has successfully delayed the proposed privatization of the town’s water system. On August 5, local residents submitted 222 signatures to force a referendum on the sale, which had been advanced under the Water Infrastructure Protection Act (WIPA) that might bypass public voting. The delay allows the Borough time to explore a $2.34 million grant aimed at upgrading its own water treatment facilities, potentially eliminating the need to purchase water from NJ American Water, which has been driving up costs. If the referendum proceeds, it will likely appear on the November 2025 ballot, giving residents a direct say in the future of their water system.

In Manalapan Township, voters will decide in November whether to approve the sale of the township’s water system to Veolia Water New Jersey Inc. for $4 million. This sale would resolve approximately $1.5 million in water system debt and $3.5 million in general township debt. The water system, which serves the southern part of Manalapan, is currently operated by Veolia under a public-private partnership established over 25 years ago. The referendum will determine if the sale proceeds, with the private company expected to make necessary upgrades while capping rate increases for two years. If voters reject the sale, the township will need to manage substantial repairs and debt through increased water rates.

The proposed privatization of the water system in Manalapan Township raises significant concerns that warrant careful consideration. Privatization would result in a permanent loss of local control over an essential service. The decision is irrevocable, and with only one bid on the table, there are doubts about whether this represents the best option for the community. Additionally, Veolia, the company under consideration, has a troubling track record both in the U.S. and internationally. Notably, Veolia recently acquired United Water/Suez, the firm previously managing public systems, and was expelled from its home city of Paris for failing to meet cost-saving objectives through public management. Veolia has faced intense scrutiny for its involvement in the Flint water crisis.

The township should also explore public sector alternatives, as it is surrounded by public providers that could offer more affordable solutions, like partnering with neighboring Englishtown and Monroe Township. Our Public Policy & Justice Organizer raised this idea at the premiere town hall meeting, August 28th 2024, recording here (minute 47). For the sake of accountability, the township must post all relevant reports, studies, and documents online for public review to ensure a fully informed decision-making process. To learn more about water privatization on the ballot in New Jersey from local and national experts, register for this timely virtual event hosted by our friends at Food & Water Watch: 7PM-8PM, September 4th, 2024.

Through participating in local meetings, learning about water policies and connecting as part of discussions about water management, you have the power to contribute to a collective effort protecting the public trust and fostering a culture of informed civic engagement. Join us: Check our Calls to Action page & Volunteer with Waterspirit today!