According to a Government of Ontario historic plaque, Butchart sold the mill to Benjamin Shantz who subsequently built a grist-mill and within three years a community of 250 people had developed around these mills. Stores, hotels and tanneries were constructed and in March 1857, a village plot named Port Elgin was laid out. The enterprise of its businessmen, notably Henry Hilker, Samuel Bricker and John Stafford, contributed to the development of the settlement, which had a population of over 600 by 1867. The arrival of the Wellington, Grey and Bruce Railway in 1872 further stimulated the growth of the community and it was incorporated as a Village in 1874 with a population of about 950. Early industries included a steam sawmill, foundry, and woolen mill.