The two vehicle crash occurred around 4:45 a.m. Sunday near the intersection of Grant and Jackson avenues.
Police say the two cars were travelling at a high rate of speed, possibly drag racing, when both drivers lost control.
One of the vehicles, a 1992 BMW sedan driven by 21-year-old Lateef Scarlett of Clayton, overturned as it entered a small body of water off Little Ease Run.
Divers were called to the scene and pulled Scarlett from the vehicle. He was pronounced dead at the scene.
The second car, a 1999 Honda Accord driven by 21-year-old John Dingle, Jr. of Clayton, struck a tree at Jackson and Grant, overturned and caught fire.
He was airlifted to Cooper Medical Center in Camden and was in stable condition with minor injuries.
Police say Scarlett and Dingle were friends.
The investigation continues.