First invented in 1854 by Daniel Halladay, the American Windmill was the first in its class to not require the constant tending of a windmill operator. The American Windmill is the wood or metal windmill used by early American settlers (like the ones you typically see still functioning in farms or backyards). The American Windmill is engineered to maintain itself by using self-oiling gearboxes and pivoting wind wheels, making it a useful way to generate power.
Ornamental windmills can come in a variety of shapes, sizes and styles. Unlike American Windmills, they are purely a decorative element in your garden and generally aren't outfitted with the equipment needed to generate power.
If you're looking for an inexpensive windmill to add to your garden, purchasing a yard spinner is an option. Unlike an ornamental windmill, a windmill yard spinner is small (often no taller than 3 feet) and made from a cloth material.
If you're looking for a way to aerate your fish pond that will also add a decorative finish to your backyard, an aerating windmill is an option. The windmill will pump air into small fish ponds and reduce the growth of algae and prevent the growth of mosquito eggs.