Balaclava Ontario was established as a timber mill in 1855. The mill was erected on Constant Creek by Duncan Ferguson and Donald Cameron. By 1860, the town had several houses, a hotel and a blacksmith shop. The mill was acquired by the Richards family in 1868. They operated the mill for the next 91 years.
The mill was rebuilt in 1936 after a good deal of the original edifice was destroyed by fire. By the 1950’s, the area was exhausted of timber, and the mill was only producing a few thousand board feet a year. The mill was able to produce one million board feet a week at peak production. In 1959, the mill was shut down and the store closed as the production moved away.
Today there are still a few residents in Balaclava. Many of the original homes are still standing, but all are on private property.