The original premises were built as adjoning stables and accommodation for the Lock/stable keeper at lock l7 (built 1770) of the forth and clyde canal. The building also served as a public house for a period some time after this.

The stables had stalls on the ground level with a hay and grain store above. This is one of the earliest examples of stable blocks on the canal which were positioned along the towpath at regular intervals to provide accommodation for the horses that towed the canal barges.

This allowed for the provision of fresh horse-power several times throughout the journey from Grangemouth to Bowling, and thus the stables were an integral part of the canals successful functioning.

Underwood was part of the earliest stretch of canal to be completed, the Grangemouth to Kirkintilloch section having opened in l773. Later stable blocks on the canal, such as Craigmarloch and Glasgow Bridge (circa l820) have a similar house and adjoining stable layout, but were designed as a block in the classic style.

Underwood Lockhouse may date from a similar period. In the early 90`s the building was renovated for use as a bar/restaurant, having previously lain derelict and has been the home of Bar 17 & Underwood Lockhouse restaurant since May 2005.