BUILT down the rugged slopes of the Ramapo Mountains and around half a dozen lakes, the 19.5-square-mile Kinnelon Borough in northeastern Morris County, N.J., has no industry, few stores, no condominiums and only one multifamily housing complex, now under construction. Sidewalks are a rarity, bears are frequent backyard visitors and most of its 3,120 houses draw their water from private wells. Only 155 homes are served by public sewers, with the remainder using septic systems.

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