The outlet of Lake Waukewan into Lake Winnipesaukee provided hydro power to the first mills in Meredith Village as early as 1795, but it was less desirable than the water sources in Meredith Bridge, Meredith Center and the Weirs. This all changed in the early 1800s when John Bond Swasey redirected the outlet into a canal leading to a 40-foot waterfall. This greatly increased the amount of available power.

Upon the completion of the canal, Swasey built a series of new, larger mills, thus solidifying the growth of the village as a typical New England mill town.

Community Park, situated along the canal, was created in 1996 on the site of the old Thaddeus Moses home (also known as the "Rust Building"). Moses operated a metalsmith shop in the building over the canal and served the Meredith region as a state senator.