From medieval times the production of wool cloth was a major Devon industry. However, during the early part of the 18th century, this industry began to decline in the face of competition from cotton and cheaper Yorkshire yarns. Attempting to revive the local economy, Sir George Yonge and Sir John Duntze, Members of Parliament and joint Lords of the Manor, launched a scheme in 1788 to build a new manufactory at Ottery, for the carding and spinning of wool, using the recently invented water frame machinery. At the same time, the original corn mill, which had stood here for 700 years, was demolished, and a new, much bigger one built.