<P> Manchester remained a small market town until the late 18th century, and the beginning of the Industrial Revolution . The Spinning Jenny in 1764 marked the beginning of the Industrial Revolution bringing with it the first fully mechanised production process, although some sources define the start of the Industrial Revolution as July 1761, when the Duke of Bridgewater's canal reached Castlefield . The myriad small valleys in the Pennine Hills to the north and east of the town, combined with the damp climate, proved ideal for the construction of water - powered cotton mills such as Quarry Bank Mill, which industrialised the spinning and weaving of cloth . </P> <P> Indeed, it was the importing of cotton, which began towards the end of the 18th century, that revolutionised the textile industry in the area . This new commodity was imported through the port of Liverpool, which was connected with Manchester by the Mersey and Irwell Navigation - the two rivers had been made navigable from the 1720s onwards . </P> <P> Manchester now developed as the natural distribution centre for raw cotton and spun yarn, and a marketplace and distribution centre for the products of this growing textile industry . Richard Arkwright is credited as the first to erect a cotton mill in the city . His first experiment, installing a Newcomen steam engine to pump water for a waterwheel failed, but he next adapted a Watt steam engine to directly operate the machinery . The result was the rapid spread of cotton mills throughout Manchester itself and in the surrounding towns . To these must be added bleach works, textile print works, and the engineering workshops and foundries, all serving the cotton industry . During the mid-19th century Manchester grew to become the centre of Lancashire's cotton industry and was dubbed "Cottonopolis", and a branch of the Bank of England was established in 1826 . </P> <P> The city had one of the first telephone exchanges in Europe (possibly the first in the UK) when in 1879 one was opened on Faulkner Street in the city centre using the Bell patent system . By 1881 it had 420 subscribers - just 7 years later a new exchange had the capacity for 10 times that number . Manchester Central exchange was still the largest outside the capital in Edwardian times when it employed 200 operators and the city had several other important roles in the history of telephony . </P>

What was manchester famous for in the industrial revolution