The Megunticook River falls 142 feet in elevation over its 3-½ mile length from Megunticook Lake to Camden Harbor. Richards saw the potential in this topography and harnessed the power of the river, building a sawmill and gristmill near Mechanic and Washington Streets. Thus began the industrial use of waterpower that was to play a large part in Camden’s future for more than 200 years. Following in Richards’ footsteps, William Minot of Boston purchased land at the mouth of the Megunticook River and erected a gristmill and sawmill in 1771. The British burned both the Richards and Minot properties, along with buildings at the Camden Harbor, in 1779 during the American Revolution. Most other early settlers earned a living by fishing, hunting, and farming.

Others harnessed the power of the Megunticook River to operate a variety mills for manufacturing and refining raw materials including mills for lumber, grain, wool, paper, gunpowder, oakum, plugs and wedges. Products included “endless felts” for the manufacture of paper, fine woolens for clothing, plugs used in shipbuilding, shirts, blasting powder, tennis balls, pool table covers, filter fabrics, and upholstery. The Civil War, and World Wars II, and I were all boons to the mill industries of Camden because of increased demand for their products.

There are eight waterpower locations on the Megunticook River, some of which retain their dams to this day. The Bisbee gunpowder mill produced 5000 kegs of powder annually for the lime and granite industries. The last functioning mill—the Knox Woolen Mill— closed in 1988. However, the Megunticook River continues to generate power at the Seabright Dam, the site of the former Seabright Woven Felt Company. This dam was converted to electrical generation in 1984 by Joseph Sawyer and donated to the Town of Camden in 2007.