Lyon's Creek headwaters were in the Wainfleet Marsh. However, they were cut off by the construction of the Feeder Canal for the Welland Canal. The creek was carried under the canal through a stone culvert. Due to the construction, the water level in the marsh slowly receded. All the while, the culvert was being clogged up by debris. Eventually, the flow in Lyons Creek decreased to the extent when it was no longer able to turn the water wheels at Cook's Mills. The industries were closed and abandoned. Thus, the canal, which contributed greatly to development of Welland, became an indirect cause of an economic recession for Cook's Mills. Later on, Welland beat neighbouring communities in the running for the county seat. Cook's Mills became a farming area as opposed to Welland's industrial centre.