The area was recognized for the potential of its water power earlier, with a gristmill and sawmill standing on the banks of local waterways in the 1740s.

More development took place with the construction of a woolen mill in 1810, intended to process the output of Goshen's large sheep population.

The village declined around the time of the American Civil War, as water power began to be phased out for industrial works.

[2] The historic district is about 29 acres (12 ha) in size, extending along Route 4 between Beach Street and Thompson Road.

Most of this area's buildings are residential and were built in the early decades of the 19th century, with Federal or Greek Revival style.