Located at the Great Falls of the Contoocook River, which drop 70 feet (21 m) over 1.2 miles (1.9 km), Bennington provided water power for mills. The first gristmill was built in 1782, with a cotton mill in 1810. A tannery and tool manufacturing industry would follow. A factory with paper-making machinery was established in 1835, located at or near the site of the present-day Monadnock Paper Mill. In 1858, the town's industries included a cutlery manufacturer, a gristmill, 2 paper mills and a sawmill. Bennington also had quite a number of farms.




