The settlement of many early villages in Ontario was directly related to the establishment of a local industry. Kleinburg, like many riverside villages developed around the existence of numerous mills. In 1848, John Nicholas Kline bought 83 acres of Lot 24 in Concession 8, west of Islington Avenue. On this land, John N. Kline built a sawmill and a gristmill. Land plans from 1848 show Lot 24 in Concession 8 divided into smaller, individual, one-quarter acre lots, thus encouraging the establishment of a village core. The Kline mills not only served the local farming community, but became the impetus for a growing commercial centre.