Requires DEP to designate municipalities with critical headwaters as headwater guardians.

This bill requires New Jersey's Department of Environmental Protection (DEP) to identify and designate municipalities with "critical headwaters" (water sources supplying drinking water to at least 1 million residents) as "headwater guardians" within one year of the law's effective date. The DEP must develop a public process to identify these headwaters using data on watershed significance, water quality, and location in sensitive areas like the Highlands or Pinelands. Once designated, municipalities must implement environmental protections - such as enhanced stormwater management or riparian buffers - to safeguard water quality, with DEP determining specific requirements within six months. These designations will be recognized in local land use planning under state law and must undergo a 30-day public comment period.