A trading area grew up to the south, outside the City walls, probably around the same time that the City of Glurns was established. The idea was to provide the new urban Settlement with an economic mainstay other than trade. For this purpose the mill stream was diverted directly at the old Bridge over the River Etsch: it would from now on serve (at the latest from 1330) as a power source for the city mill. The importance of the miller`s craft in those times is shown by the fact that millers had their own handicrafts ordinance (since at least 1615) an in Baroque times there existed here a fraternity of millers. Repeatedly destroyed and damaged over the course of the centuries, the City mill was always rebuilt, since a functioning mill was clearly in the public interest. The waterwheel was replaced by current owner and in 2004 the mill was completely restored.

The mill is situated in the St. Pankratius street, two minutes away from the town square. It is reachable only by foot.