The waterwheel continued to provide water until 1959 when following new government legislation and deterioration of the pumpset's condition it was finally taken out of service. In May 1969 all the machinery in the 1869 pump-house, with the exception of the waterwheel, was removed by a scrap merchant. In 1975, determined action by the founder members of the Castleton Waterwheel Restoration Society saved the old pump-house from demolition, and during the past 35 years a great deal of voluntary effort and hard work by Society members has restored the pump-house, installed a new sluice-gate, formed a collection of relevant artefacts and literature, and enabled the Centre to be open to the public.
The wheel was however so seriously corroded and in a state of collapse, that it needed rebuilding at a cost of £60,000. The wheel was rebuilt and installed in 2005 through the generosity of donations from visitors and substantial grants from the following organisations:
Sherborne Town Council; West Dorset District Council; Simon Digby Memorial Trusts; Manifold Trust; Pilgrim Trust; Prism Grant Fund; Awards for All; Wessex Watermark Award; Sherborne & District Society (local branch of CPRE).
In 2006 a Hindley Steam engine similar to that originally installed in the 1876 pumphouse was acquired following closure of Gillingham brickworks. The engine was refurbished and installed in 2012 in a new building funded by Chalk and Cheese, the European Agricultural Fund for European Development 2007-2013, Headley Trust and the Leisure Development Fund.