In 1525, Governor Hernán Cortés obtained permission to build water-powered flour mills. In 1604, a textile workshop was added for weaving woolen fabrics, and between 1640 and 1657, a paper mill with two vats was constructed. Over time, it was named the Molino de Nuestra Señora de Loreto. In 1905, a fire destroyed much of the factory and its facilities (including worker quarters, a store, alfalfa fields, magueyes, a garden, water intake, and aqueduct). In 1907, paper production resumed until 1986 when the site was repurposed for commercial and residential use.