The water is contaminated with tritium, a type of radioactive hydrogen that binds easily with oxygen.
The New Jersey government issued a directive to the Exelon Corporation, the company responsible for the radioactive leak, requiring them to clean up the tritium.
However, the contaminated water has been leaking into the environment for just over a year.
Although another US government body noticed the leak when at least 180,000 gallons of contaminated water were released from the plant in April of 2009, it did not pressure Exelon Corporation to clean up the spill.
Now, the level of radioactive contamination in one of New Jersey's main aquifers is 50 times higher than the US standard.
New Jersey Commissioner Bob Martin said that he was worried about the contamination, and that he felt the New Jersey government had an obligation to protect the groundwater for the state's residents.
For four years, environmental groups petitioned that the plant's license to operate be revoked.
David Pringle of the New Jersey Environmental Federation said that Exelon's Oyster Creek plant was a major threat to people's drinking water, and that the plant was leaky because of its age.