It runs from the historic Cölln and Fischerinsel quarters to the Molkenmarkt square of Alt-Berlin via the Mühlendammbrücke (Mill Dam Bridge) crossing the Spree river.
It thereby is part of the main east–west road connection in Berlin's historic city centre, beside the parallel route of Unter den Linden, Schloßplatz and Karl-Liebknecht-Straße in the north.
Built by German settlers after the Margraviate of Brandenburg was established in 1157, this new passage competed with existing river crossings at Spandau and Köpenick.
Mentioned as Molendam, it was the key This was a decisive step in the development of the Cölln and Alt-Berlin villages on the two banks of the Spree river, soon followed by a second passage at the present-day Rathaus Bridge.
The associated sales area was rebuilt under the rule of the "Great Elector" Frederick William of Brandenburg in 1687 according to plans designed by Johann Arnold Nering; called Mühlenkolonnaden, they functioned as a stock exchange until 1739.
A former grain mill, erected in 1850 in a castle-like style from red and yellow bricks with towers and battlements, was rebuilt as the seat of a municipal savings bank (Sparkasse).
The outbreak of war prevented the completion of the renovations, which included two eleven-feet wide and 35-feet long steel trusses on both sides of the lock.