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Alvøen is one of the oldest industrial places in Norway. As early as the 1620s a gunpowder mill was built here. The place itself was well situated for industrial activity, lying only 100 m from the waterfall, which provided power for the mill, and a good harbour wherefrom the products were shipped. The success of the gun-powder mill varied in the 1600s and 1700s, but what made Alvøen best known was its paper production.
Valestrand became a centre for the tanning industry in Osterøy; one of the old crafts that has developed into a local industry with many places of work. From the 1870s ever more ventures were started. Many of the large sea houses we see today around the bay have been places for tanning and leather enterprises.