The windmill was commissioned by William Kernot Shenton, on a foundation stone laid by Governor James Stirling in 1835.

The original mill, the colony's first wind-powered industry, was built by Paul and James Lockyer and operated by William Steele.

[3] The site was located near the earliest housing and agriculture of the colony, and was used for industry before being adapted to commercial, then residential, purposes.

[2] In 1957, the proposed route of the Narrows Bridge was deviated to preserve the site, after a campaign by public officials, and a folk museum was established on the grounds.

The buildings and site is noted as having permanent entry on heritage registers for its architectural and historical significance, and conservation "... for their own sake, and as a museum, is important".