The Lake Carlsbad Recreation Area is 125.6 acres located along the Pecos river from the railroad bridge south to the upper Tansil Dam. This area is used for picnics, water sports, playgrounds and fishing and boating. There are many areas for picnics in shaded areas with picnic tables and grills. There is a swim area that is open to the public from Memorial Day weekend through Labor Day weekend.

Also located in this area is the Carlsbad Bandshell where annual events are held, such as the Relay for Life, Art-A-Far, United Way Community Day, Hawgfest, Chili Cook-Off and the Fireworks Display each July 4th, to name a few. The area is also widely used by walkers for exercise. There is a 6 mile sidewalk around the entire area which is also used for several area walk'a'thons and an annual triathlon race. At the south end of the park is the 11.36 acre sports complex that contains 9 tennis courts, a tennis pro shop, 3 racquetball courts and three soccer fields with restrooms.