The new Jewish neighborhood of Mishkenot Sha'ananim was built three years after the windmill was built in 1857. This first development of the city outside its wall was possible by the efforts of British Jewish banker and philanthropist Moses Montefiore. Designed as the first windmill in Jerusalem it has never milled flour. People of Jerusalem didn't accept this present since they were afraid to settle outside the city walls. The windmill serves as a small museum dedicated to the philanthropy of Montefiore the English Lord of Jewish origin. Windmill was restored in 2012 with a new dome and vanes. The mill can turn in the wind.
Photo By Ralf Roletschek - Own work, GFDL 1.2, https://commons.wikimedia.org/w/index.php?curid=48613128