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Initially named Roosevelt, when it was first incorporated as a borough in 1906, the borough's name was changed to Carteret in 1922, after Sir George Carteret, one of the first proprietors of New Jersey, and his son, Philip Carteret, the first Royal Governor of New Jersey. On its northern border, Carteret is situated across the Rahway River from Linden, while Woodbridge Township borders the borough on all of its land-based boundaries.

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