The historic township of Carcoar rests peacefully upon the banks of the Belubula River in the central tablelands of New South Wales. Thomas Icely is credited as the first European to settle in the Carcoar vicinity. He built his sheep station up from just 10 lambs and a bull, which he arrived with in 1831. Explorer and prominent colonial figure William Lawson assisted Icely in petitioning for the proclamation of a townsite in the region. The village of Carcoar was gazetted the following year, rendering it the third oldest town west of the Blue Mountains. Its name was derived from the local Aboriginal word for the region, suggested to imitate the "cah-co-ah" call of the Kookaburra. However it has alternatively been suggested as imitating both crow and frog.

For the next two decades the village of Carcoar enjoyed gradual development. Despite threats to its establishment from many of the prevalent bushrangers of the day, the village managed to consolidate a steady economy. The Commercial Bank building which still stands today testifies to these early fracas. It was held up in July 1863 by Ben Hall and his gang, making it the site of the first daylight bank robbery in Australia.

Although copper, iron-ore and small deposits of gold were discovered in Carcoar as early as the mid 1940s, gold fever did not infect the village until 1871. However this was short lived as richer strikes in Gulgong, Hill End and Parkes dispersed prospectors. The lure of gold fields proved stronger than the stability of agricultural pursuits of the Carcoar region. This migratory trend westward effectively eroded further development of the village.

Today Carcoar's richest asset is its historic colonial buildings. The village itself is protected under a Conservation Order, classified as an Historic Village. Of particular interest is St Paul's Anglican Church. Dating from 1845, this neo-gothic creation was designed by prominent colonial architect Edmund Blacket, who later was to achieve acclaim as the architect of Sydney University. The oldest building standing is the convict built barn erected for Thomas Icely. The Presbyterian Church of 1860, Roman Catholic Church of the Immaculate Conception of 1867 and Court House of 1882 all provide much historic and architectural interest. Nearby Carcoar Dam, an unusual parabolic structure, provides camping, boating and picnicking facilities.

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