Efforts to harness the water power of the Cutalossa Creek led to the development of this village in the early 18th century. The first mill on the creek, built in 1748 by Samuel Armitage, still stands.
While commerce spurred the colonial development of the area, by the early 19th century it faced strong competition from surrounding villages and the mills fell into disrepair. Surviving portions of the old Kenderdine saw mill are today incorporated in the Cuttalossa Inn.
By the turn of the 20th century, the ruins of abandoned water-powered industries found new life in the paintings of Pennsylvania Impressionists, known as the "New Hope School" of landscape artists, who converted barns into studios and studied dilapidated grist mills as their subjects.
Placed on the National Register of Historic Places in 2002, the Cuttalossa Valley Historic District preserves for current residents and future generations the scenes immortalized in these classic paintings.