Despite the discovery of rust in the district's wheat in the 1860s, Dransfield, in partnership with a local speculator, William Bennison, expanded his milling business in 1864 by renting the steam flour mill at Braidwood Farm, and then again in 1867 by renting the three storied stone commercial premises of Henry Jacobs in Mackellar Street, Braidwood, from Robert Maddrell. Dransfield and Bennison converted this to another steam powered flour mill, installing a new 17' boiler in March 1867. Both gentlemen worked as JPs, magistrates and acted on numerous community committees including that formed in the early 1880s to encourage the railroad to Braidwood. Their circle of friends included many Braidwood contemporaries; John Bunn, Joseph Larmer, Superintendent Orridge, Hugh Gordon, the Badgeries, Roberts and Hassalls.
Milling activity continued at Jembaicumbene in Dransfield's mill until 1885 when the severe drought, lasting from about 1882 for nearly eight years, caused severe shortages of wheat. Wheat shortages, drought and floods were a regular feature of Braidwood life during the 25 years of milling at Jembaicumbene, but the worst events occurred in the 1840s and 1880s, each time resulting in a nation-wide financial depression. In a good year the two mills each turned over more than £1,000 a week, an enormous sum for the era, but by 1885 the worsening drought and a looming financial depression forced the closure of all the milling businesses for good. In Braidwood, all three main hotels, prosperous enterprises, were sold for a fraction of their values. Many local families lost their farms and foreclosures were common. William Bennison came close to bankruptcy, moving to Wagga in 1887 and dying there shortly after leaving numerous debts despite his efforts to pay all his Braidwood creditors. Charles Dransfield was forced to close his mill and lease out his 2,560 acres to Roland Hassall, who operated a money-lending business. It appears that he escaped bankruptcy but he must have come very close, and his disappointment at leaving his magnificent mill complex would have been overwhelming.
Charles Dransfield moved to Sydney with his wife and four children in 1890, dying there late that year. His wife survived until 1901. On his death the property was managed by the pastoral firm of Hassall Royds & Roberts for Maria Dransfield, and they combined it with their adjoining 9,500 acres to run sheep, with Roland Hassall managing the operation. Out of Dransfield's control, the mill equipment was sold and brutally stripped from the building. The steam engine was disassembled, and probably sold to the Jembaicumbene Dredging Company who took over the alluvial gold leases at the creek in 1899 using new technology imported from New Zealand. The remains of their three storied steam powered dredge, over 150 feet long, survives in the wetland. The mill's engine house and numerous other outbuildings were demolished and the bricks and stone used by Mr R.G. Hassall jnr. to extend Dransfield's small cottage and dairy into a larger home which he established as his own. All of the materials from the mill outbuildings and timber internal equipment were recycled into various structures around the property. After Maria Dransfield's death, at the winding up of her estate in 1905, the property was purchased by the family pastoral company, but when this was dissolved in 1920 an auction was held to disperse the various assets and the property was sold to 29 year old Charles Royds, much to the chagrin of Mr Hassall who had anticipated buying the freehold himself.
Royds converted the 1840s timber wagon house into a shearing shed, and later moved this activity into the mill itself. A busy and productive man, Royds ran an auction business in Braidwood and was involved in local community events and sporting groups. However on 29th January 1934 he died with Mr Ernest Keyte in a tragic mining accident a mile from the house. Royds had for several weeks been in the course of excavating an old mine shaft with Mr Keyte on the edge of the Major's Creek Road at Honeysuckle Creek. Waiting for the dray carrying excavated wash away to return, they were standing under the open bank when it fell on them.
The property was taken over by his son David on his return from the Second War. In the 1950s and 1960s, David Royds expanded the shearing facilities around the mill site.
The Royds family, through three generations, focused on high quality wool production at Caloola, planting exceptional pastures which saw some of the most productive wool results in the Braidwood district. During David Royd's life he was able to claim successful production of a full bale of wool for every day of the year, an astonishing record that remains unbroken to this day. David's work was continued by his son Stephen who oversaw the gradual change from sheep to cattle, with similarly excellent results.
The buildings themselves have remained effectively unchanged over much of the past century and today the mill retains many of its original components stored on upper floors and sufficient internal fabric to fully interpret how the original machinery was fitted. Excavations in February 2009 have uncovered the footprints of the engine house, with its stone engine pit into which a 14" flywheel was fitted, the foundations of the 6,000 gallon boiler, the base of the 55' chimney and furnace, the stone footings of a pump house, a large stone well, and the remains of the extraordinary 66' x 44' sunken water reservoir which was built under the north side of the mill. This had a suspended cover with iron frame and brick access hatches, supported by huge wooden posts in the centre. A brick hatch with trapdoor gave access to the flooded mine shaft below as a convenient source of water for the bakery operated at the end of the engine house. The engineer's cast iron bell was recovered from rubble in the engine pit.
As it approaches its 150th anniversary Dransfield's mill is undergoing conservation and restoration which will see the ground floor open in 2010 as an art gallery, with three artist's residences and studios on the upper floors. The mill pond, used as a tip since the 1930s, has been excavated and cleaned, revealing its interesting origins, and the 1940s and 1950s extensions added for shearing have been removed so that the mill will soon appear just as it did in the 1860s. Other buildings on the site, including the 1840s wagon barn, the 1840s stables and the old dairy with its residential additions are undergoing sensitive restoration and conservation. A 1940s shearer's quarters, relocated from the Cowra Detention Camp in 1946, will eventually be refurbished and converted to holiday accommodation.