Highlands was incorporated as a borough by an act of the New Jersey Legislature on March 22, 1900, from portions of Middletown Township. Additional portions of Middletown Township were annexed in 1914. The eastern part of the town is built on a high bluff that overlooks Sandy Hook and the Atlantic Ocean, from which the borough derives its name. Atop this bluff are the Navesink Twin Lights.
Source: Snyder, John P. The Story of New Jersey's Civil Boundaries: 1606-1968, Bureau of Geology and Topography; Trenton, New Jersey; 1969. p. 180.