Ayotte Orders AG To Review Controversial Nashua Water Deal

By Damien Fisher, NH Journal

Gov. Kelly Ayotte wants answers about the state officials who invited a Chinese beverage company to set up shop in Nashua, ordering the New Hampshire Attorney General’s Office to conduct a review.

Attorney General John Formella confirmed on Friday that a review of Nongfu Springs is now on tap.

“The Governor has directed the DOJ to look into the facts and circumstances surrounding this purchase, with a specific focus on any involvement by state and local officials and what can be done to remedy any process failures and enhance reviews of these types of purchases going forward. We will report our findings to the Governor upon the conclusion of our review,” Formella told NHJournal.

Nongfu, owned by China’s top billionaire Zhong Shanshan, quietly bought a commercial property in Nashua for $67 million earlier this year, though the property was valued at around $15 million. After months of speculation about the deal, Nashua Mayor Jim Donchess said the deal was brokered under an economic development initiative championed by Gov. Chris Sununu’s administration.

“If you have problems with this, you’re in the wrong place. This was initiated and pursued by Concord. We are kind of just spectators to the whole thing,” Donchess said.

Tensions have been mounting in Nashua for months as concerns have grown over Nongfu Spring’s acquisition of the 330,000-square-foot industrial site and its plans to draw water from the city’s main supply system.

In February 2025, Nongfu Spring, China’s largest packaged‑water producer, quietly bought a long-vacant warehouse at 80 Northwest Boulevard—a site valued at just $15 million according to public records—triggering alarm over the staggering price tag and strategic location.

At a recent public meeting, the city’s Board of Aldermen room was packed. One resident voiced the sentiment echoing the room: “Look at us… still here, still freaked out by this.”

Concerns were amplified by the building’s proximity to several defense-related installations—New Boston Space Force Station, Hanscom Air Force Base, Pease Air National Guard Base, and key transportation hubs including airports and naval facilities.

Ayotte’s decision to bring in the AG echoes her previous statements calling for heightened scrutiny. “We’re always concerned when the Communist Party, the Chinese Communist Party, or anyone associated with that party buys land in New Hampshire,” she said, questioning the inflated purchase price and demanding transparency on the company’s intentions.

State Senate Majority Leader Regina Birdsell—spearheading legislation to ban land purchases by entities from countries deemed adversarial, including China—pointed to the Nashua deal as a cautionary example.

At the federal level, Congresswoman Maggie Goodlander requested a retrospective review of Nongfu Spring’s purchase by CFIUS, expressing unease over potential threats posed by a foreign adversary acquiring land near critical infrastructure.

Rumors swirled that Nongfu might attempt to buy or control Pennichuck Water Corporation, Nashua’s semi-private water utility. But Pennichuck officials have pushed back forcefully.

CEO John Boisvert and Board Chair C. George Bower emphasized that Pennichuck is not for sale, and no water rights or land have been, or will be, transferred. Bower reiterated that Nongfu would be treated as a typical industrial customer.

Mayor Jim Donchess insists the city had no hand in facilitating the deal and only became aware of it when Nongfu’s application for a building permit emerged, which was later withdrawn in late May. He urged residents to direct their inquiries to the state level, particularly the Department of Business and Economic Affairs.

The debate has exposed a growing unease about foreign land ownership near sensitive sites, especially when tied to national security and critical resources like water.

Lily Tang Williams, the Republican challenging Goodlander in the 2026 congressional race and a former Chinese citizen, voiced her alarm: “Why do we even sell our natural resources like water to our biggest adversary?”

This story was originally published by the NH Journal, an online news publication dedicated to providing fair, unbiased reporting on, and analysis of, political news of interest to New Hampshire. For more stories from the NH Journal, visit NHJournal.com.