There are more than 1000 years of Washi history in Hitachi (current Ibaraki pref.), Nishinouchi was one of the main production sites.

Mito government, one of the three major part of the national government, encouraged Kozo farming and Washi production in the late 17th century for their government project "Great History of Japan (Dai-Nihonshi)". Through the project, the paper won stable reputations as strong and waterproof. It became very popular in Edo (Tokyo) using for account book and election paper. At the peak era of production, there were 1,663 workshops in the early 18 century.

Since long, this place local Kozo, “Nasu-Kozo(那須楮)”, is well-known as the best quality material, so used in the other paper making site.

In 1977, Nishinouchi paper was listed to “the intangible cultural assets who should take measures such as the record making”. At present two workshop remains.