393 Acres, One Dollar, and a 15-Year Vision: Inside the Preston Riverwalk Redevelopment

For decades, one of the largest pieces of undeveloped land in Southeastern Connecticut sat quietly along the Thames River.

If you’ve driven Route 12 in Preston, you’ve likely seen the remnants of the former Norwich State Hospital campus — a massive property filled with empty buildings, overgrown roads, and a history stretching back more than a century.

Today, that same site is slowly transforming into what could become one of the largest redevelopment projects in the region’s history: Preston Riverwalk.

This story isn’t just about development. It’s about environmental cleanup, long-term planning, infrastructure challenges, and the enormous effort required to turn dormant land into something productive again.

A 393-Acre Property Purchased for $1

In 2009, the State of Connecticut transferred the 393-acre Norwich State Hospital property to the Town of Preston for just $1.

The catch? Preston assumed responsibility for cleaning up decades of environmental issues and removing the abandoned hospital buildings.

Over the years, the town worked with state agencies and contractors to address hazards such as:

• Asbestos
• Lead paint
• Underground storage tanks
• Other hazardous materials
• Deteriorating / unsafe structures

By October 2025, town officials reported that the environmental cleanup had been completed, and the project moved into final review with state regulators.

Now Comes the Hard Part: Turning “Clean Dirt” Into Real Development

Cleanup is the prerequisite — but it’s not the finish line.

Once the state provides final sign-offs, Preston expects to transfer roughly 388–390 acres to a development entity associated with the Mohegan organization. That transfer is anticipated in 2026.

When the property officially changes hands, it starts the clock on the next phase: planning, permitting, infrastructure, and eventually construction.

What Could Be Built?

The Riverwalk concept has been discussed as a non-gaming destination — meaning a place designed to draw families and visitors for recreation, hospitality, and entertainment (not casino gaming). Ideas that have circulated include:

• Trails and riverfront parkland
• Restaurants and gathering spaces
• Hotels or lodging
• Campground / RV component
• Family-friendly attractions (including the possibility of a water park)

The specific program isn’t finalized — and that’s important to understand. These are concepts and planning directions, not final permits.

Trails, Parks, and River Access

One of the most tangible near-term components is public access and outdoor recreation.

Plans envision meaningful open space along the Thames River, and a public trail connection has already been approved in concept: the Poquetanuck Cove and Village Heritage Trail, which would improve pedestrian connectivity and link the village area to the riverfront.

Even before major buildings go up, it’s possible the first visible “wins” could be trails, scenic overlooks, and river access improvements.

Infrastructure: The True Gatekeeper

Large-scale development doesn’t start with ribbon cuttings — it starts with infrastructure.

Sewer Pump Station Upgrades

A key focus right now is the site’s sewer infrastructure. Preston has pursued funding and upgrades to support future flows, including a $400,000 state bond allocation tied directly to necessary pump station improvements.

Roads, Traffic, and the Bridge

The site’s primary access points are along Routes 12 and 2A, with regional traffic influenced by the Mohegan-Pequot Bridge corridor.

Transportation studies and CTDOT review will play a major role in what development can happen, and how quickly.

Why This Matters for Southeastern Connecticut

Preston Riverwalk has the potential to reshape more than a single property. If it develops at scale, it could influence:

• Regional tourism and visitor traffic patterns
• Local employment and construction activity
• Surrounding real estate demand (residential and commercial)
• Municipal finances over the long run

Early public discussions have referenced major investment ranges and job creation estimates. Whether the final buildout is smaller or larger, the direction is clear: this is the biggest redevelopment opportunity Preston has seen in generations.

What to Watch in 2026

If you’re tracking this project, these are the milestones that matter most:

• State sign-off confirming the cleanup is complete
• Closing / conveyance transferring the land and starting the development timeline
• Pump station and infrastructure completion that enables permits
• Updated master plan showing what the first phase will actually include
• CTDOT study outcomes impacting access, traffic controls, and capacity

From Abandoned Campus to Riverfront Destination

For years, many doubted the Norwich State Hospital property would ever be fully cleaned and ready for reuse.

Now, after more than a decade of remediation and planning, Preston Riverwalk is positioned to move into the next chapter — where a once-forgotten campus could become a new regional destination.

We’ll be watching closely as 2026 brings the most important question of all:

When does the first shovel hit dirt?

Tags

• Brownfield Redevelopment (2)
• Preston CT (2)
• Thames River Development (1)
• Norwich State Hospital (1)
• Preston Riverwalk (1)
• Mohegan Tribe Development (1)
• Southeastern Connecticut Development (1)
• Connecticut Economic Development (1)