According to the Goodspeed history the first mill built in the county was constructed in 1821 on Mud Creek by John and William Bringham and was evidently used to crush corn into meal and wheat into flour. Primitive hand mills were also used to crush grain. Another mill was built later on the north fork of Forked Deer River. During the summer of 1822, a mill powered by horses was constructed on what is now known as the Old Lexington and Trenton Road.

The first cotton gin was built in 1823 and was located on Beech River near Lexington. Several mills were built between 1823 and 1830: Shackleford's mill, five miles east of Lexington on Haley's Creek; McGee's mill, the forerunner of McHaney mill, on Beech River; and Trice's mill near the same vicinity. McClure's cotton gin also was built during this period, but its exact location is unknown. In 1830 or 1831, a gin and mill were built on what is known as the Buckley farm, located south of Luray where cotton was sold in seed.

A cotton mill was established in Lexington between 1835­1840, probably located across from the home of Samuel Wilson. Lint cotton was purchased at the gin and made into thread and cloth. As many as 20 people reportedly worked there at one time, receiving $2 a week in wages. At one time, R.W.Hall, who had some connection with the mill, was the payor.

The economy of Henderson County in1831 through 1851 was sound with 12 cotton gins operating. By 1850, the gins were converted to steam power, except for Harmon's gin on Beech River and Shackelford's gin and mill on Haley's Creek. These gins had no suctions and were fed by hand.

Grist and wheat mills were located in every community. Some were operated by horse power, others by water power. Some, such as the Harmon, Shackelford and McHaneymills were operated in conjunction with cotton gins. Thomas Barrow operated a mill in the Smith Schoolhouse Community. Area millers included William Gately at Mt. Gilead; William Foster in the east part of the county; Andrew Davidson in what is now Shady Hill Community; William Collins in Reagan; David Sparks at an unknown site; Martin Douglass at Jack's Creek; Alcy Hamilton and Thomas Brown in the 15th civil district and William Leonard in northeast Henderson County.