During the 1890's, Big Timber grew rapidly because of the lucrative local wool trade, and by the turn of the century it had become an important wool shipping center in Montana, then the leading wool-growing state. With abundant raw material and a good water supply, manufacturing woolen goods developed naturally here, and the Sweet Grass Woolen Mill was built along the Boulder River. It was operating by August 1901 through the efforts of local investors backed by an eastern industrial entrepreneur, but plans for expansion were blocked by lack of capital and competition from eastern monopolies, leading to the mill's failure in late 1906. The native sandstone building, measuring 40' x 84', was later used for purposes including a hatchery and an apiary. After years of severe deterioration, its ruins were removed in 1980 to make way for the interstate highway system.