The mill was founded by Samuel Greg in 1784 in the village of Styal on the River Bollin. Its original iron water wheel was designed by Thomas Hewes and built between 1816 and 1820. The over head shafts above the machines were attached to the water wheel by a belt. When the water wheel turned, the motion moved the belt and powered the machine. Originally Samuel Greg converted farm buildings in the nearby village of Styal to house the workers for the mill. As the mill increased in size, purpose-built housing in Styal was constructed for the workers. The village is still a thriving community.