Carlotta was founded in 1891 by David Zadeck and a group of people from nearby Liberty. The town was built at the location of Fort Libertia. From 1891 to 1908, the community was named Zadeck, after David Zadeck. It was renamed Carlotta in 1908, after Zadeck's wife. In 1911, a group of Armayessee Parkufos invaded Carlotta and tried to burn the community to the ground, claiming the community was built on their sacred lands. After three unsuccessful attempts, the Armayessee surrendered, and returned to their reservation nearby. In 2005, Carlotta became the sibling town of Neighbourhood, Hoscomb.