This watershed management area includes watersheds draining the highlands portion of New Jersey. The Area lies mostly in Passaic County and includes the following watersheds: Pompton River, Pequannock, River Ramapo, River Wanaque River.

The Pequannock River is 30 miles long and drains an area of 90 square miles. Its headwaters are in Sussex County and it flows east, delineating the Morris/Passaic County line. It continues flowing east and joins the Wanaque River and flows to the Pompton River in Wayne Township. The great majority of the land in this watershed is forested and protected for water supply purposes. The remaining lands are under residential and industrial/commercial use. The principal source of nonpoint pollution in the Pequannock River watershed from Stockholm to the Pompton River is urban/suburban development.

The Ramapo River has a drainage area of about 160 square miles, 110 of which are in New York State. It flows from New York into Bergen County and enters the Pequannock River to form the Pompton River in Wayne Township. Over one-half of this watershed is undeveloped, with the remainder primarily suburban/commercial/industrial. New development is extensive in many areas of the watershed. Phosphorous and bacteria are elevated. Sodium and copper may be of concern here and should be watched.

Runoff from housing and road construction sites, and runoff from urban surfaces and storm sewers, have contributed significantly to pollution in the waterways. The construction of Interstate 287 has had a significant impact upon the Ramapo. Habitat loss in this river has been expanded and intensified by local dredging and channelization. The fisheries in the Ramapo are also considered threatened by agricultural activity in the watershed.

The Wanaque River, with its headwaters in New York State, has a total drainage area of 108 square miles. That part which is in New Jersey lies in Passaic County. There are no large population centers, but most of the people live in Ringwood and Wanaque Townships. Most of the land in this watershed is undeveloped, consisting of vacant lands, reservoirs, parks, and farms. For the most part, the remainder is residential with some land being used for industry and commerce. In this region, the primary nonpoint pollution sources are those associated with urban/suburban development.