The borough will spend about $50,000 on the new minibus from Alliance Bus Group of Carlstadt.
Currently, Fair Lawn's free minibus runs on a continuous loop around the borough during the day, but officials are planning to change how the service operates next month.
The new system, which is planned to stay in place through at least the end of the year on a trial basis, will have the bus make pre-scheduled trips to pick up residents at their homes and drop them directly at their destinations inside the borough.
Officials previously told Patch they expected the new system would save gas and make the minibus easier to access for those who have difficulty walking to bus stops or don't live near the current route.
Riders will need to call at least a day in advance to schedule their trips when the trial starts.