Just ran across this post. If still interested, I grew up in NM and my dad (born and raised in NM) still lives in town. Here is a little bit of history re: the Jerusalem District told by him. The Rocky River Valley/Jerusalem District was flooded and is now part of Candlewood Lake. The project to create the lake started around 1925/1926. A man by the name of Charles Capmbell deeded a huge tract of land for the project to the Connecticut Light and Power Co. The CL&P then went about buying up surrounding farms. The Ferris family also owned a large farm and sold much, but (as the story goes) not all of it to CL&P. There is one road left in NM carrying the name Jerusalem Road. It starts at Rt 7 (just south of town), intersects Sunny Valley Rd/Sunny Valley Farm area and ends up at the lake shore. It is one of the steepest roads in NM!!
If you are still looking for family names, I would suggest you contact CL&P. They may still have records of the lands they purchased.
All the best,