The Sawmill commenced business on the corner of Barrack and Chesher Streets with William Moss as the owner with Joseph Elbourne his leading sawyer in 1897.

As Bill Banham states in his book on the history of Eugowra, this then became the nucleus of the Sawmill which operated as E & R J Hay & Company until the present time.

James Hay & and Joseph Elbourne had established a sawmill at Canowindra in the early 1900s, which they sold and purchased shares in the mill at Eugowra with William Moss.

James Hay became the sole proprietor in 1939 when he purchased the business from Joseph & Edward Elbourne. It is not known when the operation of the mill was transferred to its present day site.

Although the milling of timber will cease at the end of the month at the Nanima St Sawmill, owner Ron Hay is quick to remind people that the other side of the business, Haylam, will remain in operation with the laminating and value adding and processing sections of the business, which includes the tongue and groove flooring, kitchen tops, benches, tables etc.

The decision to cease the milling of timber began when the State Government locked up the Brigalow area, which included the Pilliga scrub, an area of 750,000 acres. Because the Government had done a deal with the sawmill operators up north and offered to buy them out or help them survive, to be fair, they had to then make the same offer to the sawmill operators in the southern area of NSW.

Mr. Hay said his company then asked the Government to increase their log quota and he would build a new mill. The Government couldn't guarantee this request so as a result the offer by the Government to buy out their existing quota was accepted.

With the closing of the milling section, the jobs of the two loggers in the forest and five men in the mill have become redundant.

"The Government has been very generous" Mr. Hay said,these employees have accepted redundancy from the company plus an assistance package from the Government, which will become effective from the end of the month.