Loanhead was a tiny village by about 1599, when it was included on a map of the Lothians. It was granted a charter allowing a weekly market and annual fair in 1669. Coal was mined profitably in the area for Sir John Clerk of Penicuik by 1685. The Springfield paper mill, in the valley of the River North Esk to the south of the town, commenced in 1742, while Polton mill followed in 1750. By 1754 Loanhead was a medium-sized settlement.