The village's history is intertwined with coal-mining, and since the decline of the industry in the 1980s, it has become primarily a commuter base for the larger surrounding towns of Aberdare and Merthyr Tydfil and Pontypridd, as well as the cities of Cardiff and Swansea.

Several deep coal mines appeared around Cwmdare, and families began to move into the area from other parts of Wales looking for work.

The new miners needed housing, and between 1853 and 1859 the first streets were laid down on the west side of the Dare Valley, these would become the centre of the modern village.

Over the next two years coal and slag tips were cleared, the River Dare was diverted, and the small mining hamlet of Pithead was demolished and two artificial lakes were created.

Paths and bridges make the area popular with walkers, families and dog-walkers, while those with an interest in industrial history can still find evidence of the area's mining past dotted about the landscape, including an old pit wheel, erected as a monument at the site of the Bwllfa Dare pit.

It features a café and 15 visitor rooms[clarification needed], as well as an exhibition that tells the story of Cwmdare's industrial and natural heritage.