Legal Question in Landlord & Tenant Law in New Jersey

There is no hard-and-fast rule one way or the other. A residential landlord is responsible for providing a habitable premises which logically includes the provision of potable water. So, if the landlord expects the tenant to pay for water, the lease usually provides for that. The tenant is required not to overuse the water even if the landlord pays the bill. However, where there are multiple units with common utility meters, there are limitations on landlord's ability to pass on the utility costs.

See also: http://info.corbettlaw.net/lawguru.htm