The watermill was erected on River Mergupe in 1938. According to locals, in 1936 the old master/miller from Riga was granted a credit of five hundred thousand Lats from the national bank "Latvijas Banka", and over a period of two years he built the most modern mills in Latvia at that time. The mill is preserved to the present days, and all devices and machinery are still on site and in working condition to produce flour, semolina, pearl barley, groats, and there are devices for grain purification. A small hydroelectric power plant was built in 1998. Tours are offered to demonstrate its operational principles.