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Flaxley is a small settlement between Mitcheldean and Littledean and was originally home to a Cistercian abbey, founded in 1148, The abbey was dissolved during the Dissolution of the Monasteries between 1536 and 1537, and its remains were incorporated into the private residence that bears its name.
The settlement is the most easterly of the known iron working sites in the area, with references back to 1140. For much of the 17th and 18th centuries, nearby Gunns Mill was home to a blast furnace with a 22ft diameter water wheel, powered from a small brook. Sadly, this building fell into disrepair and is deemed to be at risk.