The Elkhorn River provided water power for the Neligh Mill, but its meandering course, sandy bottom, low stream fall, flooding, ice jams, and other recurring problems made that power difficult and expensive to use. Successful operation depended on adequate water head above a dam, yet Nebraska's relatively flat landscape meant dams backed water far upstream and created large mill ponds that were hard to manage. Early brush dams at Neligh were temporary and unstable, and as early as 1890 the mill required a nine-foot head for adequate power, with debris and brush added to increase height. After 1900, frame dams with concrete bases, wings, and inter-locking sheet piling replaced brush dams, and the Neligh Mill frame dam was built in 1903. As machinery increased, dams were raised to produce more horsepower, but settling flumes, shifting channels, muskrat damage, leaks, washouts, and mechanical troubles with gears, shafts, and power drives periodically idled the mill and reduced production. Farmers and townspeople often helped repair flood damage, and in 1900 the mill began generating local electrical power using water, while gasoline and diesel engines supplied power during water shortages. Financial losses from shutdowns and the high cost of repairs and improvements gradually ended reliance on water power. Flooding in 1915 again changed the river's channels, leading the mill to use a large diesel engine to run equipment during the busy World War I years. A new flume and penstock built in 1919 briefly promised a return to water power, but a 1920 flood ended that effort, and the mill thereafter depended on diesel or electrical power. In 1976 the Nebraska State Historical Society reconstructed the headgate, flume, and penstock, and flood waters destroyed the last remnants of the mill dam in June 2010.