From 1900 to 1917 Carter was a trustee of Kamehameha Schools, the estate of Bernice Pauahi Bishop set up by Charles Reed Bishop, which was an even larger landowner than the Parker Ranch.
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Dredging projects nearby spearheaded by Walter F. Dillingham created excess coral which filled the swamp, purchased by Dillingham in 1912 from the estate of Bernice Pauahi Bishop.
Charles Reed Bishop, a philanthropist and co-founder of Kamehameha Schools and First Hawaiian Bank, built the museum in memory of his late wife, Princess Bernice Pauahi Bishop.