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The Overshot wheel is the most profficient of the watermills, it does however require a head of water from a higher point in order to power the wheel from above. Unlike the undershot wheel - which relies on the current to push the paddles & thus turn the wheel -  the overshot wheel has  troughs or buckets which fill up one by one & it is the weight of the falling water which actually turns the wheel. 
The mill need not be built actually alongside the stream as the water can be diverted via a channel or conduit from quite a distance provided there is sufficient gradient to enable the flow.
The mill featured here also has a small millpool  directly behind the mill which stores sufficient water to run the mill if the supplying stream is a little slow in times of drought.
The sluicegate can be seen and also a bypass sluice is fitted as this helps to control the flow of water in times of heavy rain.
This would be a small village mill
where locals would take their corn to be ground into flour.
A pair of pigs can be seen below the bypass sluice & these would be another source of income for the miller
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      OVERSHOT MILL
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