The band began writing material for their fourth album, their first with Roadrunner, in 2006, with a planned 2007 release. Recording began in August 2008 at Ginsburg's "Studio CIG" in New Hope, Pennsylvania with the guitarist once again at the forefront of the album's production. Frontman Miller said of the band's approach to the recording of the album:
We are approaching this record very differently than previously... this process has proved to be amazingly productive and successful, because the two of us [Miller and Ginsburg] have been coming up with amazing melodies, rhythms, beats, and harmonies that we never had time for on our other albums.
In March MTV reported that the band was "almost done" with the album, revealing that it would contain songs entitled "Hellions on Parade" and "The Boardwalk Body", which Margera revealed was written by Miller about a childhood trip on which he had heard of some one discovering a dead body under a boardwalk. Despite this news, the first official update on the recording process was not issued until August, in which the band said the following:
The new album is coming along quicker and smoother than any record we've ever done, and the excitement of being with a new label with many possibilities has me writing non-stop. I'm still coming up with music for the new record, which the band and I are reluctant to elaborate on the details of the material and direction because it raises and/or lowers fans' expectations; but it's obvious in typical CKY fashion that if we didn't feel it was better than what we've done in the past that it wouldn't be worth working on. Some of the song titles we're working with are "Hellview III: Hellions on Parade", "Karma Works its Way", "Underappreciated", "Making Contact", "...And She Never Returned", "The Boardwalk Body", "There's Two of Me" and other classics to be. Our work ethic has been more along the lines of Volume 1 and IDR where we tend not to overexamine things and just go with what sounds great right away. There's still a lot of work to do but the album will easily be out by March/April '08.
However, following this news, rumours began to surface that the band had, or were due to, split up. In October MTV reported that "there's trouble in the world of CKY", alleging that "a physical altercation recently broke out between various members of the group", quoting Ginsburg as saying that Miller "has quit CKY to pursue his own band" and that he and Margera would continue as CKY. Miller was also quoted as explaining that after hearing them "talk smack" about him, "he confronted the rest of the band, after which a fight broke out", threatening legal action should any of the songs written for the band's album appear without his consent. Following this incident, the band went on a short hiatus, while the band focused on side-projects and their personal lives for almost a year.
In October 2008 the silence was finally broken, as Miller reported that the band were back together and were "98% done tracking the new CKY record". It was also revealed on the band's MySpace page that two shows were scheduled for 2008, on October 30 and 31 in West Chester dubbed "Hellview III". Recording ended in November of that year. On January 29, 2009 it was finally revealed that CKY's fourth studio album would be called Carver City and be released on May 19. Further song titles revealed were "Karmaworks" and "Woe Is Me", and Miller praised "the undying hardcore support of our fans, our unorthodox musical approach and a brand new partnership with Roadrunner Records" for "keeping CKY strong". Described as "more inventive ... more layered ... [and] the most inspired album [by the band]" by Ginsburg, Miller revealed that Carver City contains a "dark summer vacation vibe" and explained the album's title thus:
The fabled town of Carver City has a history of bad luck and misfortune, all the while giving the impression that it’s a pleasant family getaway. Much like CKY's town of Hellview, Carver City's events are depicted in the songs, with story lines coming from real life events.
In March the album's cover artwork was revealed; in April it was revealed that "Hellions on Parade" would be the lead single from Carver City and that a music video directed by Bam Margera (for what was eventually revealed to be "A#1 Roller Rager") was to be recorded on April 20 with fan involvement; and on May 19 the album was released in North America. On July 3 Carver City was released as an LP album, following a petition started by members of the CKY Alliance, the band's official fanbase.
On music website allmusic, Carver City received a rating of four out of five stars, the same as was awarded to the band's previous two albums, Infiltrate•Destroy•Rebuild and An Answer Can Be Found. In a review for the site, critic Phil Freeman praised the album as evidence of the band "being smart and unique", explaining that the band had established their own identity separate from the skate/stoner rock image produced by their association with Bam Margera and the CKY video series.Ultimate Guitar staff writer Amy Sciarretto noted that "a mingling of hard rock and alternative rock on most of the songs ... allows the band to appeal to a wide, diverse cross-section of subversive rockers and skate punks who want something new, different and exciting than what’s currently blasting on the radio."