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Located at the Great Falls of the Contoocook River, which drop over, 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.

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