During the summer, the meadow feeds Prosser Creek with clean, cold water, that in turn sustains high quality aquatic habitat in Prosser Creek and the Truckee River. Given its size, healthy geomorphic condition, and hydrologic regime, Carpenter Valley retains a large quantity of runoff from the Sierra Crest. Several special-status species are likely found in Carpenter Valley including willow flycatcher, wolverine, mountain yellow-legged frog, and Pacific fisher. It supports wildlife species including black bear, mountain lion, bobcat, coyote, and various bird species and is summer range for the Loyalton-Truckee deer herd.
Lower Carpenter Valley includes wet meadow, fresh water emergent wetland, riverine, and fen habitat types, as well as red fir, lodgepole pine, and mixed-conifer forest.
