The name Saugerties is derived from the Dutch "Zager's Killetje", meaning a sawmill on a creek, and in fact, there was a mill built on Esopus Creek to harness the creek's waterpower. The mill formed the cornerstone of a thriving paper industry, which produced as much as eight tons of paper daily, making it one of the leading producers of paper in the 1800's. Today, Saugerties is a thriving town, with many shops, restaurants, B&B's, art and antique galleries, and historic sites.