[1] A paper mill was established in 1788 (the first in the north of England) and greatly expanded with mechanization so that in 1894 it had 300 hands (half being girls) and was a major factor in the expansion of the village.

In 1828 a local entrepreneur John Richardson used this as the basis for a Spa which enjoyed considerable success with the well-to-do, becoming less fashionable as industry grew in nearby towns, but being remade as a playground for workers.

[1][2][3] It was during the Victorian era that much of the town's architecture was constructed, including some grand residences and many listed buildings, so that by 1898 it had much of its present form.

[2] In the 17th century a group of swordmakers (Oley, Vooz, Molle and Bertram) from Solingen in Germany settled in Shotley Bridge, in order to escape religious persecution.

[1][4] Shotley Bridge was chosen because of the quality of the ironstone in the area and the softness and fast flow of the River Derwent.

[1] The Oley family were makers of the highest quality swords, rivalling those of Toledo, by using Damascus steel,[1][4] in great demand during the Napoleonic Wars.

[2][4] Before the last remaining cottages occupied by the swordmakers were demolished, there was an inscription over the door of the Oley house on Wood Street reading "Das Herren segen machet reich ohn alle Sorg wenn Du zugleich in deinem Stand treu und fleissig bist und tuest alle vas die befolen ist".

This means "The blessing of the Lord makes rich without care, so long as you are industrious in your vocation and do what is ordered you".

[2] This is the site of the (now disused) Anglican parish church, St Andrew's, Shotley, which is high on a hill above the town.

This path leads along the north bank of the River Derwent, through first a large field on the opposite side of the river to the Shotley Bridge Cricket Club, then a small wooded nature reserve including the artificially created Price Pond (Google Maps) / wetland and stream, a farm at the top of the following hill, and eventually to the Northumberland hamlet of Newlands.

The Derwent Walk is accessible from Blackhill to the south and from the road to Medomsley heading away from the Crown and Crossed Swords pub and A694 to the east.