Around 1768, William Armstrong constructed a grist mill there, which remained for more than a century. A second grist mill was constructed in Paulina in 1783 by Peter B. Shafer. That mill was later used as an axe-helve factory and saw mill. By 1851, Paulina had a post office, and by 1882 the population was 110. In 1890, a grist mill was still located there. In 1895, the
Paulina Dam, also known as the Paulina Lake Dam, was built on the
Paulins Kill. Rated a "significant hazard" by the
New Jersey Department of Environmental Protection, the process of removing it started in December 2023. The removal was completed in 2024. File:Paulina Dam on the Paulins Kill, Paulina, NJ.jpg|Paulina Dam in December 2022 File:Paulins Kill after Paulina Dam removal, Paulina, NJ.jpg|Free-flowing Paulins Kill at the site in March 2025 ==Today==