Now the mill, a Grade II* listed building, which received national publicity when it won third place in the BBC2's Restoration programme in 2004, has an exciting future as a visitor attraction and training centre for traditional skills.

The North East Civic Trust, which raised more than £1m for the restoration, is ready to hand it over to the Gayle Mill Trust, a not-for-profit organisation which has already employed a mill manager, an administrator and a sawmill operator.

Chairman William Lambert and his fellow director Tony Routh – a descendent of the original owners – have worked with a team of 15 volunteers for three months to get the mill ready to welcome visitors.

Mr Lambert said: "t has been a long road to get here but the reward is going to be well worth it to see this building coming back to life again."

The present mill at Gayle, near Hawes in Upper Wensleydale, was built in 1784 for Oswald and Thomas Routh as a water-powered cotton mill, but it is thought to have been built on the site of an earlier mill – parts of which survive.

Although it was in the vanguard of mechanised cotton production, by 1826 the mill was being used to process flax for the linen industry and later wool to supply yarn to the hand knitters whose skills are documented in the Dales Countryside Museum in Hawes.

In the 19th century the building's role changed again – when it was converted for use as a saw mill. Then Gayle Beck, which flows off Dodd Fell, ceased to drive the 24ft diameter waterwheel and began powering new technology – a Williamson and Sons turbine installed in 1879.

The Williamson double vortex turbine – last used in 1948 – has been restored by Gilbert Gilkes, of Kendall, the successor to its original manufacturer. It is reputed to be the oldest working example in the world to survive in situ and now provides the line shaft power to drive all the woodworking machinery.

Even the Victorian machinery, which was installed at about the same time as the turbine, is of historical interest. The Civic Trust said: "Individually, each represents the rare survival of important historic elements. Together, they make Gayle Mill outstanding."

But it is not just a museum. The mill is being returned to use as a training centre in traditional woodworking skills, an example of sustainable energy and provider of local employment.

Brian Alderson, the mill's previous owner, who used it as a sawmill until 1988, died at the end of last year.

Mr Lambert said: "It is sad that he did not quite see it come to fruition, but he knew it was on the last straight and that gave him peace of mind. He did not come down to the mill for the last six weeks of his life but he was updated constantly on what was going on."

Historic papers, including photographs, order books and accounts, which belonged to Mr Alderson, will help to tell the mill's story to visitors. Mr Lambert said: "We offer what I think is a unique visitor experience. It has some of the best industrial heritage in the Dales."

Gayle Mill will be open for guided tours from 10am to 5pm on five days per week between March 18 and September 30, but is closed on Mondays and Fridays except bank holidays. Admission charges are £5 adult, £2.50 child and £14.50 family.

Tickets must be bought at the information centre at the Dales Countryside Museum in Hawes.