Waterfall Gully was also the site of Burnside's "first secondary industry". In the late 1830s, Thomas Cain built a watermill on First Creek for John Cannan, which was then employed to power a sawmill on Cannan's property. Cannan operated the mill as the "Traversbrook Mill" for approximately two years before selling the venture to a Mr. Finniss. Finniss opted to run the mill as a flour mill instead, and the mill was rebuilt and renamed "Finnissbrook Mill". The mill continued to operate under a variety of owners until the late 1850s, but it was dismantled during the 1880s, and today only traces of the earthworks remain.