McCarthy and neighboring Kennicott lie in a beautiful area of glaciers and mountains in the heart of the Wrangell-St. Elias Park and Preserve. The Kennicott River flows by on the west side. Kennicott, which lies about 5 miles up the mountain from McCarthy, is a National Historic Landmark. The town was build by Kennecott Copper Corporation between 1910 and 1920 at the site of the richest copper mine in the world. (An early-day misspelling made the mining company Kennecott, while the region, river and settlement are Kennicott).

Since no gambling or drinking were allowed at the town of Kennicott, nearby McCarthy developed as a colorful diversion for the miners providing a newspaper, stores, hotels, restaurants, saloons and a red light district. Kennicott became a company town with homes, a school, hospital, gym, tennis court and silent movie theater. The mine shut down abruptly in 1938 due to economic conditions. The distinctive red mill buildings perched on the side of the mountain were locked up and left as they were. The National Park Service is currently restoring some of the mill buildings.