The establishment was under the licence of James W. Badley, who was selling beer for three pence per glass at the time. Unfortunately, the building was demolished in 1939. Mary Badley organised the dining room and the accommodation bedrooms. She also assisted her husband with the bar. Mr Badley had approached Wolfe's Schnapps to have a sign painted on the front of his hotel as well as the company's gold-lettered name on his window. Wolfe's Schnapps was an intensely popular drink during the late 1890s and early 1900s. The product was forever promoted by an American, Udolpho Wolfe, due to its supposed health benefits. RECENT YESTERDAY, TODAY COLUMNS: As it turned out, the health drink's main ingredient was gin that had been produced in Holland and shipped around the world, especially Australia. The first hotel at the location was opened by Rebecca Atchison in 1871. It was called the Fountain of Friendship Hotel. She held the licence for the first year only before Issac Marshall became licensee from 1872 until 1882. George Pearl was there for one year the following year. When William Hynds took over in 1883, he decided to change the name to the Sawmills Hotel. After two years, Charles Heath took over the business from 1886 to 1889. He attended the Bathurst Court on June 30, 1887 to attain his licence for his Saw Mills Hotel after he had taken over (note the hotel's spelling at this time). This was followed by Harry Witts, who stayed some 11 years, from 1890 to 1902. Several of Mr Witts' customers were caught buying liquor after hours in December 1890 and he appeared before the police magistrate and Hons. E. Webb and W.H. Suttor, JPs. Licensing-Inspector Musgrove charged Ah Shaw with carrying liquor away from the Sawmills Hotel after prohibited hours. William Beachaim acted as the interpreter for the defendant, who pleaded guilty to buying sixpence worth of rum from Mr Witts' hotel on Sunday morning of November 17. He said he was not a drunkard but had bought the rum to make medicine as he had a bad cold. He was fined five shillings and costs. Jane Frampton was also charged and pleaded guilty. She was fined five shillings and costs. On the same day, Mr Witts appeared as licensee of the Sawmills Hotel and was charged with keeping his house open for the sale of liquor after hours. Constable Skyrme told of seeing Jane Frampton leave the hotel with a bottle of ale. The Bench said that it was only a case of suspicion and dismissed the information. In June 1892, Mr Witts' hotel licence was once again approved after he attended the Bathurst Licensing Court. Henry Flanagan then took over for a similar number of years from 1903 until 1912. In early November 1914, a year after Mr Badley became the licensee, he placed several advertisements in the National Advocate: "Everybody appreciated the good drinks provided by J. Badley at the Sawmills Hotel. Local Agent for the A.W.U." An alleged theft took place at the Sawmills Hotel in April 1916. The matter was handled at the Bathurst Police Court before Mr C. Jennings, P.M., when Joseph H. Smith, aged 37, private in AIF, was training at Bathurst. He was charged with having stolen, on April 3, a gun metal watch, a gold chain and a gold medal valued at £6 18s 6d. The accused pleaded not guilty. Constable Mulherin stated that he apprehended the accused in William Street on April 3 and charged him with the theft. The watch and medal had been recovered from Mr Winter's jeweller's establishment, where they had been sold for 12s 6d. The hotel was closed permanently on June 30, 1922.