The approximately three-kilometre-long, now wooded valley lies on the upper reaches of the Steinbach and is considered the cradle of Steinbach. The power of the mountain stream was used to process the blanks for the knife blades in a division of labor. The cluster of seven grinding mills, or Schleifkothen, each 100 m apart, gave the valley its name. The chief forester Otto Schmidt from Steinbach also coined the name "Little Steinbach Switzerland" based on travel descriptions from the 19th century. The remains of a grinding mill can still be discovered in the valley today, an enchanting place for hikers on the Messerweg trail or the Luther circular trail, where nature and the history of Steinbach meet. Steinbach's metal industry has had an eventful history. Today, the "Messerhaus" is located on the site of the fourth Schleifkote, whose products are sold in the Grüner Baum or the tourist information office and are still very popular today due to their high quality. It was known as Steinbach's landmark and collapsed in 1959.