Caledonia was once a small strip of land between Seneca and Oneida villages. The Grand River passed through Caledonia dividing it into two sides, North and South. In 1834, Ranald McKinnon was hired by the Grand River Navigation company to build a dam in Seneca and a dam in Caledonia. Completed in 1840, the dams made water power available. Mills sprung up all over Seneca village, and five mills were built in Caledonia by 1850. One renamed Caledonia Mill which has been rebuilt and is now used for office space.