John and James Merriwether and Leonidas Hardeman in 1874 built gristmill and sawmill at this site, with stone dam across the San Marcos. Bob Innes, John Orchard, J. K. Walker, and Fritz Zedler, as Luling Water Power Co., bought mills (1884), adding cotton gin. A milling veteran, Zedler in 1888 bought all stock and made eldest son partner. The gin, soon burned, was rebuilt. Units were added. Sons Herman and Charles joined firm. In 1890 and later, the Zedlers furnished water to city; 1894 and later, city power. In time various mill units closed; operations ceased about 1960.