The Hocking River was used as the canal south of this canal lock. A dam created a slack water, which allowed the canal boats to safely travel down the river.

Sugar Grove was laid out by Elizabeth Rudolph. The first house was built by Samuel White around 1835. The name Sugar Grove was chosen due to the heavy growth of sugar timber in the area. An Indian encampment and a large burying ground was originally located in this area. Around 1843, Joseph Stukey built a grist mill along the Hocking Valley Canal. John D. Martin eventually purchased the mill and rebuilt it. It was the only mill in Sugar Grove.