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The word "waterpower" is correct and usable in written English
It refers to the energy derived from the movement of water, often used in the context of hydropower or water-driven machinery. Example: "The old mill utilized waterpower to grind grain into flour."
Dictionary
waterpower
noun
Alternative form of water power
Exact(60)
The Yangtze River has considerable waterpower potential.
East Asia's waterpower potential varies by region.
There are important reserves of waterpower.
Its waterpower resources are also considerable.
Whereas many workers had inhabited rural areas under the domestic system, the factory system concentrated workers in cities and towns, because the new factories had to be located near waterpower and transportation (alongside waterways, roads, or railways).
Abundant waterpower, a fine harbour, and a moist climate encouraged textile milling in the town as early as 1811, and by 1871 the city was a leading cotton-textile centre.
The Rothesay cotton-spinning mill, first of its kind to be erected in Scotland, used waterpower from nearby Loch Fad.
The Industrial Revolution originated in Lancashire during the 18th century with the introduction of cotton manufacture, combining the use of waterpower, the mechanization of spinning, and the adoption of the factory system.
In the 18th and 19th centuries abundant waterpower and, later, steam power based on locally mined coal stimulated the growth of industry in the region.
The site at Bodwell's Falls (the source of abundant waterpower) was promoted for industry in 1845 by the Essex Company, formed by a group of Boston financiers that included Abbott Lawrence, for whom the town was named.
Sweden's metal industry still follows a pattern established during the days when waterpower and forestland (yielding charcoal fuel) determined the location of iron mills.
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