At the beginnings of the 19th century, the flour industry had its golden age in Uruguay, and at the end of that century over a hundred mills had been built in the whole country.
Lavagna Mill was built in 1884 on the shores of Maldonado Stream, by initiative of Mr. Ignacio Lavagna, an italian resident of the city of San Carlos.
One of its peculiarities was that it worked with hydro-electric power, generated by a reservoir and an artificial canal built in the left margin of the stream.
In 1928, after a devastating fire, the facilities were refurbished with accessories brought from Germany by Carlos Lavagna, son of Mr. Ignacio.
It finally stopped working in 1931, after the decease of Carlos Lavagna, last living owner, and all the machinery was removed. Nowadays the place is in ruins.
In the year 2005 the mill was appointed as national historical monument by resolution of the Presidency of the Republic.