Jersey City is in Hudson County, bounded on the north by Hoboken, New Jersey and on the south by Bayonne, New Jersey. The Boonton Water Treatment Plant is located adjacent to one of the City's water sources, the Boonton Reservoir, approximately 23 miles northwest of the City. Potable water is pumped via aqueduct to the Jersey City area, where it is distributed to retail customers. Wholesale customers are served along the aqueduct. The City has a favorable cost of living and tax environment for attracting business.
Wages are relatively low as are taxes and other city charges for utility services.
Many New York City companies have offices in Jersey City due to the relatively low cost of doing business. In recent years the City has had economic problems, and as a result, the Mayor has focused on the City's economic development and financial challenges. He has been instrumental in the promotion of privatization and desires the most cost-effective method for providing water services to the City's customers. The City provides both retail and wholesale water service, and approximately 29,000 of the City's 32,000 retail customers have meters with a diameter of one inch or less. The City provides wholesale water service through individual contracts with UWR of Hackensack, New Jersey and the municipalities of Hoboken, Lyndhurst, and West Caldwell.