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The Borough of Carroll Valley began on September 30, 1974 on the petition of more than eighty percent of its prospective freeholders. The Borough's creation was the direct result of sustained action by the Carroll Valley Citizens Association.

This unusual circumstance of Borough formation arose from the failure of an ambitious residential development and the indifference of local township officials to the plight of residents and landowners in the defunct development, Charnita, Inc.  Borough boundaries were made to coincide with the most built up sections of the Charnita development, but did not include all of it. Within the boundaries were also some non-development farms, orchards, and residential properties. The total boundary lines remain as originally established, 21.5 miles in all, enclosing 5.5 square miles of land and water. Within the Borough are over 60 miles of roads.

Carroll Valley's location in the southwest corner of Adams County is one of unusual beauty with a combination of unspoiled farm and orchard land, woods, meadows, and mountain slopes. Most of the land in the Borough is in the Tom's Creek basin. This stream, while subject to flooding and runoff erosion during high water, remains essentially clean and unpolluted.

The Borough has excellent recreational facilities, including Carroll Commons, the Borough park; development possibilities from donated lots for future "vest pocket parks" and three man-made lakes, two of which are open to the public for recreation and fishing. Among privately owned facilities are a ski resort with beginner to advanced trails, a lodge, a motel, and a swimming pool. Adjacent to the ski resort is an eighteen hole golf course which includes a clubhouse and a motel.