 Due to its location on one of the main waterways connecting central Russia and the White Sea (it was controlled first by Novgorodians, and after the fall of Novgorod was transferred to the Grand Duchy of Moscow), and the later construction of the surface road connecting Moscow and Arkhangelsk, by the 17th century Verkhovazhye was a major trading settlement.It was first mentioned in the 17th century, and in 1678 it became a "posad", a semi-urban settlement.In the 18th century industry was introduced, which included a distillery, an iron works, and a paper production plant.