Carbonado was one of quite a few towns in the Carbon River valley to be settled during an economic boom in the region. The boom was brought on by raw material demands in nearby growing towns such as Seattle and Tacoma. Starting with the town of Wilkeson and moving on through Burnett, Carbonado, Montezuma, Fairfax, and finally Manley Moore, these settlements sprawled up the valley to the very boundary of Mount Rainier National Park. Most of these towns were company towns, meaning that they specialized in the harvest of raw materials on the plot of land that the town was situated on which was owned by a commercial company. Often—and such was the case of Carbonado—the company also owned the houses and the energy resources as well. The energy resource in Carbonado was also the raw material that the citizens of the company town were harvesting, coal.