By an Act passed in 1504 riparian owners along the Severn were authorised, notwithstanding the earlier enactment of the freedom of the river itself, to take "reasonable recompense and satisfaction" from every person going upon their land to draw a boat. There is no evidence that the landowners availed themselves of this authority; but in a later Act, passed in 1532, it was stated that although, "time out of mind," people had used, without any imposition or toll, a path one foot and a half broad on each side of the river for drawing their boats, "of late certain covetous persons" had "interrupted" those so using the said paths, "taking of them fines and bottles of wine," and the Act imposed a penalty of forty shillings on anyone attempting to enforce such tolls, except as regards the reasonable recompense which the riparian owners could claim. This enactment seems to have been due to the action of local officials in Worcester, Gloucester and other places on the river in seeking, as told in Nash's "History and Antiquities of Worcestershire" (1781), to raise revenue for their cities or towns by taxing traders who used the Severn for the transport of their commodities.

The importance of the Severn, from the point of view of trade and commerce, in the middle of the sixteenth century, is suggested by what William Harrison wrote of it in his "Description of the Sauerne" (1577): "As the said stream, in length of course, bountie of water, and depth of chanell commeth farre behind the Thames, so for other commodities, as trade of merchandize, plentie of cariage ... it is nothing at all inferiour to or second to the same."

One reason for the early commercial prosperity of the Severn towns was the important trade in flannels which they carried on with Wales; though the industry was, also, considerably developed in the Severn counties themselves. Made mostly in the farm-houses and cottages of Montgomeryshire, Merionethshire and Denbighshire, before the days of factories, the flannels and webs were taken by the makers to the fortnightly market at Welshpool. This was a convenient centre for the drapers from Shrewsbury, who, journeying thither along the Severn, would, at one time, buy up the entire stock; though later on they had competitors in the traders from Wrexham and other places. Although carried on only as a domestic industry, the making of these Welsh flannels underwent considerable expansion, Archdeacon Joseph Plymley saying, in his "General View of the Agriculture of Salop," published in 1803, "The manufacture in Wales by means of jennies introduced into farm-houses and other private houses is four times as great, I am told, as it was twenty years ago."

At Shrewsbury the wares thus brought down the Severn from Wales were purchased mostly by merchants from London who either sent them to Continental markets or else consigned them to South America or the West Indies, for conversion there into clothing for the slaves.

As the demand increased, flannels and webs were more and more produced in and around Shrewsbury itself and other parts of Shropshire. Shrewsbury also developed a large manufacture of coarse linens, linen threads, and other textiles, and eventually attained to such prosperity that Defoe says of it, in his "Tour":—

"This is indeed a beautiful, large, pleasant, populous and rich Town; full of Gentry, and yet full of Trade too; for here, too, is a great Manufacture, as well of Flannel, as also of white Broadcloth, which enriches all the Country round it.... This is really a Town of Mirth and Gallantry, something like Bury in Suffolk, or Durham in the North, but much bigger than either of them, or indeed than both together.... Here is the greatest Market, the greatest Plenty of good Provisions, and the cheapest that is to be met with in all the Western Part of England; the Severn supplies them here with excellent Salmon, but 'tis also brought in great Plenty from the River Dee, which is not far off, and which abounds with a very good Kind.... There is no doubt but the Cheapness of Provisions, joined with the Pleasantness and Healthiness of the Place, draws a great many Families thither, who love to live within the Compass of their Estates."

Archdeacon Plymley speaks of Shrewsbury as having been, "chiefly from the advantage of the river, for several centuries past, a sort of metropolis for North Wales."

Bewdley, which had obtained its charter from Edward IV., was another Severn town which developed an extensive trade in the exportation not only of Welsh flannels but of timber, wool, leather, combs and sailors' caps. All these were sent down the river to Bristol, whence the Bewdley dealers received, in return, imported groceries and other commodities for distribution throughout Wales and Lancashire. Bridgnorth also attained to considerable importance as a convenient point for the transport to Bristol, via the Severn, of goods brought by road from a Hinterland extending to Lancashire and Cheshire.

There was, again, much traffic to and from towns situate on the Warwickshire Avon, which enters the Severn at Tewkesbury after passing through Stratford, Evesham, Pershore and other towns. Defoe says of this affluent of the Severn: "The Navigation of this River Avon is an exceeding advantage to all this part of the Country and also to the Commerce of the City of Bristol. For by this River they derive a very great trade for sugar, oil, wine, tobacco, iron, lead, and in a word all heavy goods which are carried by water almost as far as Warwick; and return the corn, and especially the cheese is brought back from Gloucestershire and Warwickshire to Bristol."

The Wye, which enters the estuary of the Severn below Chepstow, after passing through or along the borders of the counties of Montgomery, Radnor, Brecknock, Hereford, Monmouth and Gloucester, was, with its own tributary, the Lug, not made navigable until 1661, when an Act (14 Car. II.) was passed, the preamble of which set forth that—