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The first records mentioning the water mill on the Bauda Canal date back to the 13th century. Until 1772 the mill had been rented by the Frombork Chapter, however, after the Partitions, it became the state property of Prussia. In 1802 a certain Mr Dousa purchased the mill, and then in 1852 the mill was inherited by Herman Hantel. The mill burned down in 1857, however, in years 1872-1873 the son of the owner Ernest Handel build a new three-story building connected with the tower on all three levels. The building was a brick building in Neo-Gothic style with wooden ceilings, equipped with the most advanced grain milling devices in that era. The mill produced very high quality flour, shipped to Elbląg, Braniewo, Królewiec, Pieniężno. The mill was driven by water. At the end of the 19th century and at the beginning of the 20th century the mill devices were upgraded, by installation of a turbine chamber as well as a mill-dam. In the first half of the 20th century a steam locomobile was erected next to the mill, which served as a back-up drive for the mill devices. A cast-iron pulley, which was an important component of the reserve power supply, has survived to this day and is placed on the eastern façade of the Water Tower. One of the biggest mills in former East Prussia was named after Nicolaus Copernicus “Kopernikus-Mühlenwerke”. It was destroyed during World War II.