Stad Dishoungh erected his water-powered sawmill about 1870, west of old Embryfield (Staley) along East Carolina Creek on the Peter Gray survey in San Jacinto County. About 1882, Jasper Dominey took over the sawmill, installing steam machinery and a circular saw. James H. White replaced Jasper Dominey at Carolina Sawmill about 1901, when Dominey moved his sawmill operations to Carolina Switch. James H. White moved on to Carolina Switch when invited by W. A. Bell, Dominey's successor at the Switch.
Gebhart, Williams, & Fenet bought the Carolina Switch plant six miles to the west as well as Carolina Sawmill in 1909. Carolina Sawmill's operations became subsumed in those at Carolina Switch and disappears from history.
W. T. Block notes that this region of East Texas had three areas known as “Carolina” at one time or another: Civil-War Carolina was a Trinity River freshwater port, disappearing with the coming of the International & Great Northern through Riverside; Carolina Sawmill, on the Peter Gray labor along East Carolina Creek, in northwest San Jacinto County; Carolina Spur, or Carolina Switch, was located about mid-distance between Dodge and Riverside along what is now Highway 405.