Background
The island of Manhattan, surrounded by brackish rivers, had a limited supply of fresh water available, which dwindled as the city grew rapidly after the American Revolutionary War, and fresh water sources became polluted by effluent. Before the aqueduct was constructed, residents of New York obtained water from cisterns, wells, natural springs, and other bodies of water. But rapid population growth in the 19th century, and encroachment on these areas as Manhattan moved further North of Wall Street, led to the pollution of many local fresh water sources. Below Grand Street, a small number of well-off customers of the Manhattan Company had fresh water delivered to them, but that company was actually more focused on banking – it eventually became Chase Manhattan – and only paid as much attention on its water activities as it needed to not to lose the state charter that allowed it to bank. The poor and the rest of the city were forced to rely on well water, often made palatable by adding alcoholic "spirits", prompting temperance campaigners to call vigorously for the municipal provision of water.
The unsanitary conditions caused an increase in disease. Epidemics like cholera and yellow fever ravaged the city. A polluted aquifer, overcrowded housing, the lack of sewers, public ignorance of basic sanitary conditions, and the existence of polluting industries near wells and residential areas contributed to an unprecedented mortality rate of 2.6% (1 death per 39 inhabitants) in 1830. In addition, the rapid expansion in densely packed wooden buildings, combined with a lack of an adequate water supply, led to many fires, culminating in the 1835 Great Fire of New York, which destroyed large parts of the city.
Read more about this topic: Croton Aqueduct
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