Derby's heyday arrived with the industrial revolution. The first water-powered silk mill in England was built there by John Lombe and George Sorocold in 1717.  Derby-born Jedediah Strutt invented an attachment to Lee's famous knitting frame that allowed the production of ribbed stockings. Strutt later worked on the improvement of the water-powered spinning frame. The first water-powered cotton spinning mill was built at Cromford, Derbyshire, in 1771 by Richard Arkwright, Samuel Need and Jedediah Strutt. Strutt soon opened another four factories of his own at Belper. In the late 18th - early 19th  century, James Fox produced in Derby excellent lathes and lace machines for the factories in Derby and Nottingham, and even for export to Russia and France. In the 19th century, the Midland Railway set up its headquarters in Derby, and the Derby Railway Workshops started producing locomotives and carriages.

Interestingly, Derby was awarded city status only in 1977 on the occasion of Queen Elizabeth II's 25th anniversary on the throne. Another curious fact is that it has a sizable deaf community, and a highly praised school providing education in the sign language.

Although it only recently became a city, Derby has had a cathedral since the 14th century. It was probably built over an earlier medieval building. The tower in Perpendicular Gothic style was erected in the 16th century. It is the second highest cathedral tower, and contains the oldest set of ten bells in the country. The nave is separated from the chancel by a lacework wrought iron screen by a famous local ironsmith, Robert Bakewell. The Cathedral also contains brasses of the Cavendish family. A former silk mill houses the Derby Industrial Museum. It relates the story of the city's industrial traditions, with a special emphasis on Rolls-Royce aero engines and the railway industry. The museum features a program of temporary exhibitions and educational activities.