On this site Oswego's first industry, a saw mill, was established in 1850 by Albert Alonzo Durham on this portion of his 637 acre Donation Land Grant which included "Old Town" and much of East Oswego. He advertised his new mill in the Oregonian's first edition of December 6, 1850, stating that "Oswego is 7 miles upstream from Portland." Durham built a wooden dam whose water turned a 36 foot diameter water wheel to power the mill.
Albert Alonzo Durham, a native of Oswego, New York, left Springfield, Illinois, in 1847 traveling the Oregon Trail with his wife, Miranda White and young son, George. First settling in Oregon City he founded Oswego in 1849. In 1865 he sold this mill and the remainder of his land grant to John Corse Trullinger, who resumed business as the Oswego Milling Company, and replatted "Old Town" in 1867.