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The Moulin de Madame is located on the banks of the river Lot in the old parish of Bias near Villeneuve-sur-Lot. The mill was originally built around 1250 by Baron de Pujols. The income from the mill was given as a gift to his daughter. Many people believed that this lady was in fact his mistress rather than his daughter, leading to the local practice of calling the mill Le Moulin de Madame.

Over time the mill was extended and became one of the largest and most important mills in the Lot-et-Garonne region. In 1977 the mill ceased to be functional and has since that time been unoccupied.

This area of France is rich in history and was for a long time ruled by the English. Villeneuve-sur-Lot was founded in 1264 by Alphonse, Count of Poitiers, brother of Louis IX, on the site of the old town of Gajac, which had been deserted during the Albigensian Crusade. The town has since grown to be the main centre of this area of the Aquitaine. The town stands mainly on the right bank of the River Lot and is connected to the quarter on the left bank by a 13th century bridge. On the left bank there are still portions of the 13th century ramparts and high square towers rise above the gates to the north-east and southwest, known respectively as the Porte de Paris and Porte de Pujols.