The first records of a water-powered forge for iron working on the River Monnow at Osbaston date from the 12th century, when one was owned by Baderon of Monmouth.

The height of the weir was raised to impound a reservoir, and the water was directed by a leat to the turbines underneath the brick building, which housed three alternators.

Landowner Ronald Kear proposed that the power station be rebuilt and, working in partnership with Environment Agency Wales, invested £500,000 in the project.

[4][9] Monnow Mill, a watermill producing flour from the 15th century is situated on the outskirts of Osbaston about half a mile down stream from the power station.

[11] The house's occupants have included Captain George William Moyse Harmer in 1901,[12] Robert Alan Russel MacClelland in 1967,[13] and Michael John Marshal Clarke (High Sheriff of Gwent) in 1985.

[15] To the east of the Old Hereford Road, Priory Farm is a high quality building of the late 17th century, which was said to have borne a date of 1672 on a now-eroded datestone.