local history resource found online says that a sawmill was constructed on the Saugus River on the Lynnfied/Wakefield line in 1663. This particular image presumably shows either the original or a descendant of that first structure about a century ago.
Correction: The Saugus River reportedly flows from Lake Quannapowitt through Reedy Meadow and onward to the Saugus Iron Works and General Edwards Bridge to the ocean.
In Lynnfield, you can get a look at the Saugus River not far from Exit 41 of Route 128 and Northrup Associates Realtors.
I'm not completely sure where this sawmill stood, but I'm told that it stood over near a swampy parcel of land off of Main Street and Route 128 in Lynnfield. An email received later Monday however cites an old sawmill dam closer to the Sheraton property.
I just happened to have some photos of this area that were originally meant as an outdoor photo gallery, having found an old trail in there at some point in my research. No traces remained of a sawmill in this area, although mobility was limited by water and marsh within a fairly short walk on nearly all sides.