Founded in 1903 by J.B. Dawson as a cattle operation, Carpenter Ranch was taken over in 1926 by Farrington "Ferry" Carpenter, a Princeton and Harvard Law School graduate who became one of the Valley's most prominent citizens. He managed the ranch until his death in 1980.

The Nature Conservancy acquired the ranch in 1996 as the centerpiece of its broader effort to conserve the natural and agricultural heritage of the Yampa River Valley. Today, Carpenter Ranch Preserve is a working cattle ranch, research and education facility, and center for cooperation and dialogue. The site features a visitor/education center restored from one of the original buildings, providing both cultural and ecological information.

The historic barn and house are registered with the Colorado Historical Society and the National Register of Historic Places. The preserve protects one of the world's largest remaining examples of a rare riparian forest type dominated by narrowleaf cottonwood, box elder, and red-osier dogwood. A walk through this rare cottonwood riparian forest offers chances to see many species of birds that reside here. The preserve has been designated as an Important Bird Area by the Audubon Society, making it a birdwatcher's paradise.