The mill was built in 1873 by John Neligh, the city's founder, to make use of water power from the Elkhorn River.

Another Neligh businessman, W. C. Gallaway, took over the mill and completed construction, including damming the Elkhorn River.

It provided flour and meal for customers across Nebraska, as well as the War Department and Indian Bureau.

Exhibits relating to the operation of the mill and its history are located in the original warehouse from 1866, as well as the 1915 addition where the power plant was once housed.

The remnants of the dam that collected water for the mill are still visible on the Elkhorn River nearby.