The history of proper paper happened in China. Similar to the Egyptians, the Chinese had, almost 5000 years in the past, created a pictographic form of writing. The Egyptians too had been using several kinds of things to scribe on, most commonly pieces of bamboo and woven silk and possibly the barkcloth they were making for other uses derived out of the Paper. Mulberry was made use of too.
Historical documentation leads us to believe that in 105 years after the birth of Christ a government worker going by the name of Tsai Lung, developed paper, although it appears from archaeological discoveries that it was actually around in what is now the People's Republic of China for at least two hundred years prior to Tsai Lung.
Back during times gone by scribing was usually on some derivative of bamboo or occasionally on strips of silk, which were then called ji. Nevertheless the cost of silk and bamboo being weighty, these two materials were not convenient. Due to these factors Tsai Lun thought of making use of bark from trees, hemp, fish nets, and rags. In 105AD he submitted a report to the emperor with regard to the process of making paper and got high accolade for his ability. From this time paper has been utilized all over the world and is known as the "paper of Marquis Tsai".
Whether the above historical tag is accurate, will likely never be known! However, the main factor has to be that they found that they could pound some compounds derived from plant material in to a paste, depose unwanted substances, put the paste in water, screen it out onto cloth sheets giving it enough time to dry out. After drying, it calcified into a hard, firm sheet that was extraordinarily light, and as long as it did not get damp or wet, proved decidedly tough.
It's a fact that this very simple of papermaking technologies is even now practised in precisely the same way within Tibet and Nepal, the first areas to make use of the craft from South East Asia. A basic frame utilises a cloth manufactured from cotton stretched over one side, diluted mache is emptied into the other side and moved around until it has reached an even state. After which it is left hanging so that it will enable the liquid to leave it and the mush to dry in to a parchment sheet which may be taken off.
At some point in time an extremely clever individual worked out that manufacturing a frame with ribbing and placing a delicate bamboo mat that is removable over it, would let the paper-making process to be quickened to a great degree. Instead of tying up one mould for each sheet of paper, consequently severely limiting the number of sheets that could be produced at one time, a stack of sieved pulp was able to be built up a layer at a time, with just a strip of cotton thread between them which would facilitate separation at a later time. The stack would then be squeezed very slightly, and every layer of grume transferred to a place to dry.