In 1591, Sebastian Köppel established a hammer mill near the border to Bohemia on the banks of the Zwota in order to capitalize on the rich deposits of iron ore and the region's vast supplies of wood, both for building and charcoal production. On 1 February 1602, there was the first documented mention of the "Höllhammer" (in English approximately: "Hell Hammer" or "Hollow Hammer") in the neighboring town of Schöneck's church register. At that time, blacksmiths, miners and charcoal makers were living there. In 1628, the hammer mill burned down and was only partly rebuilt.