Rahway City Council Considers Privatizing the Public Water Utility
Resolution AR-55-26 initiates a review process for the potential sale of the Rahway Water Utility.
The Rahway River with the city’s water tower in the background. The Rahway City Council is considering a resolution that would authorize bids for a potential sale of the city’s water system. (Source)
Chris Howell | February 2, 2026
The Rahway City Council plans to vote tonight on a measure that would begin the process of potentially privatizing the city’s public water system. Resolution AR-55-26 would authorize the city to seek bids from regulated utilities interested in purchasing the Rahway Water Utility.
The resolution does not approve a sale but would allow city officials to review offers and evaluate whether a deal should ultimately go before residents in a referendum.
In a phone interview with The Central Jerseyan ahead of the meeting, Rahway Mayor Raymond Giacobbe urged residents to attend, saying the administration plans to present findings from a study that has been underway for more than a year.
“This is not my choice or the council’s choice,” Giacobbe said. “This is the residents’ choice.”
The mayor said the city has spent more than a year studying the water system, including infrastructure needs, regulatory requirements, and long-term costs. He described Monday’s meeting as an opportunity for residents to hear directly from city officials and outside experts before any decisions are made.
DON’T LET AN ALGORITHM DECIDE YOUR NEWS
Independent hyperlocal news that’s fast, fair, and accurate.
Under the resolution, the mayor and the city’s business administrator would be authorized to prepare and advertise bid specifications. The document makes clear that the council could reject any or all bids and that no agreement could take effect without voter approval, as required by New Jersey law.
The resolution outlines specific conditions that would need to be met in any potential deal, including a 10-year rate stabilization period, maintaining current senior citizen discount programs, continued service to municipal and school buildings, and the assumption of maintenance and capital improvement responsibilities by any buyer. It also requires compliance with state and federal water quality standards and completion of required lead service line replacement.
City officials cite rising regulatory demands, aging infrastructure, and increasing maintenance costs as reasons for exploring whether Rahway should continue operating the system or consider transferring it to a regulated utility. The resolution frames the bid process as a fact-finding step rather than a commitment to privatization.
Public interest in the agenda item grew Sunday afternoon after Rahway resident Andrew Garcia Phillips shared a post on social media drawing attention to the proposed vote. Garcia Phillips, who gave permission for his name and post to be cited, criticized the proposal.
“Similar processes in other NJ towns have traded upfront revenue for higher long-term costs and reduced local control,” he wrote.
City Council President Jeffrey Brooks did not immediately return a request for comment.
If the resolution passes, bids would be solicited and reviewed before the council decides whether to move forward with any proposal. Any sale of the water system would require a separate ordinance and approval by Rahway voters at a future election.
The council meeting is scheduled for 7 p.m. at City Hall and is expected to include a presentation on the water utility, followed by a question-and-answer period and public comment before the council vote.