Salvado's aim of independence for New Norcia was realised in 1859, when a decree from Rome separated it from the diocese of Perth. Previously treated as a source of agricultural produce and revenue for the monastery established at Subiaco by Serra, whose main interest was in the white population, New Norcia now entered a period of expansion, and Salvado was named its Abbot for life.

The Flour Mill was built in 1879 when the original mill became too small to handle the processing of wheat from the mission's expanding leases and neighbouring properties. It produced flour not only for breadmaking but also for the production of macaroni and spaghetti.

The Flour Mill was partially restored in 1988 with the assistance of a Bicentennial grant.

In 1993 the Monastery's Bakehouse was reopened and bread is now baked on a daily basis. Attracted by the old wood-fired oven a specialty baker, produces a range of breads under the label, "New Norcia Natural Breads". These breads are available fresh each day at both the Museum Shop and the Trading Post as well as at a number of selected outlets in Perth. (The Bakery itself is not open to the public.)

Crossing the highway to the original mill you will see just to the north a small, low-roofed building, New Norcia's first police station and gaol. Early in 1860 Salvado had become concerned at the trouble being caused by Aborigines visiting the mission, and his appeals to the Toodyay Resident Magistrate resulted later that year in the arrival of Mounted Constable Ebenezer Martin.

Now a private home, the police station was the venue for the Victoria Plains Road Board's inaugural elections in 1871. Bishop Salvado was elected to the Board, the predecessor of the Victoria Plains Shire Council.