Hydraulic tests and geophysical logging performed in the Palisades sill and the underlying sedimentary rocks in the NE part of the Newark Rift Basin, New York, USA, confirm that the particular transmissive zones are localized within the dolerite-sedimentary rock contact zone and within a narrow interval below this contact zone that is characterized by the occurrence of small layers of chilled dolerite. Transmissivity values determined from fluid injection, aquifer testing, and flowmeter measurements generally fall in the range of 8.1E-08 to 9.95E-06 m²/s and correspond to various scales of investigation. The analysis of acoustic and optical BHTV images reveals two primary fracture sets within the dolerite and the sedimentary rocks—subhorizontal fractures, intersected by subvertical ones. Despite being highly fractured either with subhorizontal, subvertical or both fracture populations, the dolerite above and the sedimentary rocks below the contact zone and the zone with the layers of chilled dolerite are significantly less conductive. The distribution of the particular conductive intervals is not a function of the two dominant fracture populations or their density but rather of the intrusion path of the sill. The intrusion caused thermal fracturing and cracking of both formations, resulting in higher permeability along the contact zone.