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The building was constructed in 1826 by John Eastwood and Colin Skiller. It started as a grist mill but later became a paper mill. It was the first mill in Upper Canada to produce machine-made paper. The smokestack was an 1870s addition when the mill converted to steam power. A fire in 1900 ended the building's use as a paper mill.
During the early twentieth century, the building was used for stables and a riding school.
East York opened the site as the Todmorden Mills Heritage Site as part of a centennial celebration in 1967. The building is a survivor of a much larger complex of buildings. Other buildings in the Heritage Site include residences and part of a brewery.
In the late twentieth century, the mill was renovated and is now the Papermill Theatre and Gallery.
It was designated as a heritage site in 1989.
