<P> A cotton mill is a factory housing powered spinning or weaving machinery for the production of yarn or cloth from cotton, an important product during the Industrial Revolution when the early mills were important in the development of the factory system . </P> <P> Although some were driven by animal power, most early mills were built in rural locations near to fast - flowing rivers and streams and had water wheels to power them . The development of viable rotative steam engines by Boulton and Watt led from 1781 to the growth of larger, steam - powered mills and allowed them to be concentrated in urban mill towns, most notably Manchester, which with neighbouring Salford had more than 50 mills by 1802 . </P> <P> The mechanisation of the spinning process in the early factories was instrumental in the growth of the machine tool industry, enabling the construction of larger cotton mills . Limited companies were developed to construct mills, and the trading floors of the cotton exchange in Manchester, created a vast commercial city . Mills generated employment, drawing workers from largely rural areas and expanding urban populations . They provided incomes for girls and women . Child labour was used in the mills, and the factory system led to organised labour . Poor conditions became the subject of exposés, and in England, the Factory Acts were written to regulate them . </P>

Where were most mills built and why were they built there
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