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Situated about 15 kilometres west southwest of Busselton, this townsite was declared as Carbunup in 1926. It is named after the nearby river of this name, and the name was changed to Carbunup River in 1958. to avoid confusion with Carbarup, a townsite in the Mount Barker region Carbunup is an Aboriginal place name that has been variously said to mean "place of a kindly stream", "place of cormorants" and "place of the stinkwood thicket".
Carbarup River is a small town providing residents with a peaceful lifestyle away from the hustle and bustle. There are a couple of cafes and a general store, however residents rely off the surrounding suburbs for shopping centres and schools. Carbarup is also home to Discover Deadly, which is a unique educational experience home to over 30 different species of reptile and amphibian.