The water mill was first mentioned in 1586, making it the oldest mentioned building of the whole estate. Most likely, the mill was there already earlier, as natural conditions were favorable and the manor needed the mill. In addition to flour of different coarseness, the mill produced groats and it had all the necessary machinery for cleaning and processing grain. The present stone building is from the middle of the 19th century and played an important role in the economical activities of Vihula Manor processing the grain of the manor.
The Water Mill is located behind the central grounds of the estate next to the Mustoja River and the Waterfall and after a complete renovation it features thoughout 3 floors the best preserved and functioning water mill in Estonia together with original wooden beams and staircases.
Besides, the Water Mill features on the ground floor a Visitor Centre, a Post Office, a Lifestyle Café with a Summer Terrace overlooking the Mustoja River and the Waterfall and a small Manor Museum with exhibits related to the history of Vihula Manor, the life of the von Schubert family at the estate and the history of the Water Mill itself. Moreover, the Water Mill has a unique 2-storey Design & Fashion Shop featuring Vihula Manor Lifestyle products on the ground floor and the first floor.