Watertown was first settled by Timothy Johnson The waterpower was first used for sawmills, and later prompted the construction of two dams, one downtown (where the river flows south) and one on the eastern edge of the city (where the river flows north). The Watertown economy remains heavily reliant on light industry. In 1853, a plank road was completed from Milwaukee to Watertown. After planks roads were no longer used, it was replaced by highway and railroad, a street named "Watertown Plank Road" survives in Milwaukee. The road is referenced by the "Plank Road Brewery" family of beers, including Icehouse beer, produced by Miller Brewing Company in Milwaukee. Similarly, a plan for a canal from Milwaukee to the Watertown area was once planned, but was replaced by railroad before any work had been completed other than a dam in Milwaukee. The territorial legislature incorporated the Milwaukee and Rock River Canal company in 1836, but the plan was abandoned in 1848. The canal would have provided a waterway between the Great Lakes and the Mississippi River, but even if completed, it may not have seen much success, similar to the Portage Canal. The city did not grow quickly at first, but a influx of GermansGerman immigrants increased the population to over 10,000 in the late 19th century. The city claims to have been the home of the first kindergarten in the United States, started by German immigrants; the building that housed this kindergarten is now located on the grounds of the Octagon House Museum (Watertown)Octagon House Museum in Watertown. Source: http://en.wikipedia.org/wiki/Watertown%2C_Wisconsin