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city, Chittenden county, northwestern Vermont, U.S. The city lies on a steep side hill rising from the Winooski River just northeast of Burlington. It was founded in 1787 by Ira Allen and Remember Baker, Vermont pioneers who were attracted by the waterpower potential of the river's lower falls. Known as the "Mill City," its development as an industrial community began with the establishment of a woolen mill in 1835. Textile manufacturing became a major industry but is no longer a factor in the city's economy, which now depends chiefly on woodworking, soap making, and tool and die industries. St. Michael's College (founded 1904) is in nearby Colchester. Inc. 1922. Pop. (1990) 6,649; (2000) 6,561.