The Town Records show that Joseph Carpenter was an inhabitant of the town of Warwick where he had a "corn Mill." "and where stood his dwelling house in the South side of the Pawtuxet River at the wading place near the falls on said river." This property was purchased by his father from Matthias Harvey and given to him, probably at the time of his marriage. Here he appears to have remained until 1667, although as early as 1663 he was at Long Island making negotiations with the Indians for the purchase of land at Oyster Bay. On May 24, 1668, the Indians sold about 3,000 acres at Musketa Cove to Joseph Carpenter - he having on November 5, 1667, obtained from Governor Nicholl's permission to occupy said land. This land was in much dispute as the settlers claimed ownership but on April 6, 1668, an order was issued by Governor Lovelace to the constable and Overseers of Hempstead to settle the matter.

On November 24, 1668, Joseph received as equal shareholders with him Nathaniel Coles, Abia Carpenter (his brother-in-law), Thomas Townsend, and Robert Coles. Following the example of their Rhode Island people, they styled themselves "The Five Proprietors of Musketa Cove Plantations,' which name and style continued until the Revolutionary War. In 1677, official land patents were issued to the Proprietors for Oyster Bay and Musketa Cove.

The saw mill which Joseph built provided wood for the "fort" which stood at the lower end of Manhattan - Fort Amsterdam. Wood was not the only income source, apparently. Lord Belfomont, then colonial governor of New York, in 1699 wrote to the Board of Trade in London describing Musketa Cove as one of the top four ports for smuggling on all of Long Island. In 1693, a French privateer was spotted lying at anchor in Musketa Cove's harbor, ostensibly to land illicit goods for resale in New York City. A British frigate, the "Richmond," was dispatched from New York to capture the ship and crew, but succeeded only in seizing the captain of the French bark. Also arrested was Nathaniel Coles, for his role in the plot to defraud the King and colony of their just due in customs. Coles was released several weeks later, officials fearing that "he might perish from the cold in Queens County jail." This incident is very possibly the source of the oft repeated but undocumented legend that Capt. Kidd buried part of his treasure in Glen Cove.