Initially the main source of income was agriculture but minerals such as iron ore, cobalt and copper soon began to add to the wealth of the district. Gold was discovered in the 1850s and businesses began to flourish.
By 1850 Carcoar was the most populous town, next to Bathurst, west of the Blue Mountains and three coaches per week ran between these towns.
It was during the 1860’s that bushrangers took an interest in Carcoar and surrounds. In 1863 Johnny Gilbert and John O’Meally, members of the Gardiner/Hall bushranging gang, attempted Australia’s first daylight bank robbery at the old Commercial Bank in Belubula Street. (this building still stands today as a private residence).
The Municipality of Carcoar was formed in 1879 and the first Mayor was Barnard Stimpson.
The Blayney – Cowra rail line was completed in 1888 making life easier for the resident of the area.