Virgin Arm–Carter's Cove is a local service district and designated place on New World Island in the Canadian province of Newfoundland and Labrador.
Its name probably originated in the fact that the narrow arm was not settled until the 1870s, although it was used for winter woods work and schooner-building by fishermen from Tizzard's Harbour and Twillingate from the early 19th century.
The first record of settlement at Virgin Arm is from Lovell's Newfoundland Directory (1871), which identifies fisherman John Smith as a resident and notes a population of 10 people.
New World Island is only one kilometre wide at the bottom of Virgin Arm and early in the 20th century there was a tramway built between the two bodies of water for the transportation of fishing boats and lumber.
Virgin Arm had a strong tradition of woods work and, after the decline of the schooner fisheries in the 1920s and 1930s, many people found employment in pulpwood cutting or in supplying local sawmills.