As it's name suggests, it is in fact the place where the lumberjack Carver stays.
When Matthew's party went there to cross the bridge there to meet with Kraden, they were met with a dangerous scenario. Apparently, a Psynergy Vortex has appeared near the bridge and has destroyed it. Now, a child was holding on for his life at the destroyed bridge, where he unfortunately was when the vortex appeared. After helping the child by using Whirlwind, Carver then talks to you. With the bridge destroyed, Carver thought to fix the bridge by using a Gondola there to cross to the other side. Although the gondolas were old and were about to be broken, Carver still decides to use it with the help of the Grip Psynergy of his friends. Carver successfully crosses to the other side, but Matthew and company is still unable to cross. Ultimately, Matthew would need to detour to the south.
The inn of Carver's Camp is located in the same building as the shop, by the southern exit, and costs 4 coins per party member.