Haughton Castle paper mill was founded in 1788 by Captain William Smith and operated until the 1880s. It was powered by water from the River North Tyne and a large leat and tailrace arch still survive. A drying shed and cottages also stand nearby with drying lofts above. In 1793, the mill was commissioned to make paper for printing forged French assignats, a currency issued by the French revolutionary government, in an attempt to lower its value. This is a Grade II Listed Building protected by law.