The middle Carson River Watershed begins at Mexican Dam and ends at the Lahontan Dam. The Carson River flows through Dayton and across the Lyon County desert to the Lahontan Reservior. Settlers originally came through the area in 1853, many remained and established farms and ranches. By 1862 Dayton was a milling and trade center for the Comstock Mining. Water from the Carson River was supplied to the many mills and ore processing plants in the area. The river also provided water to the many farms and ranches.

Impacts of past mining and natural events, such as floods, have caused incised banks and other problems through this section of the watershed. Local landowners, conservation districts, community officials, state and federal agencies are working together to restore the river and riparian areas.