The New Jersey Highlands are a vital source of potable water for the State. In 2011 the Highlands region supplied 136 billion gallons of water or approximately one-third of the total potable water used in New Jersey. Highlands water was distributed to 332 municipalities in 16 counties. These municipalities are home to 70% of the State’s population. This is an increase from 1999 estimates, when 107 billion gallons of our potable water was estimated to have come from the Highlands and was used in 292 municipalities in 16 counties (Hoffman and Domber, 2004). For this analysis, potable water includes self-supplied residential uses and purveyor-supplied residential, commercial, and industrial uses. The current analysis uses an updated dataset and methodology than was used in a previous report on the potable water supplied by the Highlands in 1999. Self-supplied industrial and commercial, mining, agricultural, power generation, and irrigation water withdrawals, as well as withdrawals on the Delaware River downstream of the Highlands, but outside of New Jersey, are not considered in this analysis.