The region called "Neue Welt" (the new world) evolved as the industry started to establish itself around the upper end of the "St. Alban-Teich", an artificial canal constructed during the 12th century to bring water and water power to the industry in Basel.
The late Gothic mill is situated directly below the Villa Merian and its English Garden.
The hamlet and the mill between "Neue Welt" and St. Jakob an der Birs are mentioned in a deed in 1259 as being owned by the Basel Dompropstei (Provost's Church).
Because the mill was situated upon a small hamlet of the river Birs, its existence was subject to flooding or water shortage.
New museum strategies were entered in 2002 and now the former watermill offers an exhibition on the history of the mill and millers’ daily work from the Bronze Age up to the present day.