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In 1891 Henry Wright bought the Manor Mill and his son William then rebuilt the current Millhouse. After the first world war it was uneconomical for William Wright to start the mill wheel again so the property stood empty for over ten years.
Around 1929 Sir George Hussey and two friends, who spent their holidays in Polperro formed the Polperro Electric Company, the wooden mill was removed and a turbine wheel to generate current was fitted, the Mill was then the village power station, this giving power to light the streets and run the ice making machine for the fishermen.
In the early 1950’s the Millhouse became a guesthouse and the in 70’s gained a full alcohol licence and become the Old Millhouse Inn.
The Millhouse has twice been severely damaged by floods. The flood of 1976 which led to the tragic death of the owners father when he was swept away by the fast flowing water and in 1993 the floodwater reached the first floor. The building was left derelict for almost two years until it was completely refurbished and is now a popular locals pub with accommodation and excellent food. The old mill leat, which drove the mill wheel, still runs.