How did water powered factories differ from steam-powered factories?

Water-powered factories relied on water wheels or turbines to harness the energy of flowing water, typically located near rivers or streams, which limited their geographical placement. In contrast, steam-powered factories used steam engines that could be situated anywhere, as they depended on coal or other fuels to generate steam, thus offering greater flexibility in location. Additionally, steam power allowed for greater control over machinery and the ability to run larger and more diverse operations compared to the more limited scope of water power. Overall, steam power marked a significant advancement in industrial capabilities and mobility.