An 18th century settlement within the historical parish of Llanfrechfa Upper, Pontnewydd became an important part of the Industrial Revolution in the Eastern Valley of South Wales.

The canal, railway and river (Afon Llwyd) encouraged Victorian industries to flourish in this area which resulted in a steady rise in population.

For 200 years the area was dominated by heavy industry, revolving around the local coal, iron, brick and tin plate works.

In 1802 George Conway and Edward Jenkins of Ynys-Pen-llwch in Glamorgan, built a tin-works on the side of the Afon Llwyd at Lower Pontnewydd.

By 1865 the Nut and Bolt works of Weston and Grice, and the ironworks of William Roper had been established further along the canal.

Since the New Town, Pontnewydd has lost all that heritage to light industry in Avondale, Springvale and Somerset Road.