Headwaters RC&D Area, Inc. was formed in 1973. Teamwork has been the driving force behind the success of Headwaters RC&D/EDD. Success in any regional effort requires the participation and involvement of its citizens. Headwaters, a grass roots organization, initiated and sponsored by local government, expands economic and social opportunities through wise use and development of both human and natural resources.

In 1993, the Headwaters area was designated an Economic Development District (EDD) by the U.S. Department of Commerce, Economic Development Agency. Headwaters plays a significant role in resource conservation and economic development in Southwest Montana. Since its inception, sponsors have sought solutions to local problems.

Headwaters Economic Development Committee maintains a Comprehensive Economic Development Strategy (CEDS), and assists with the development of small business, tourism, employment, and other economic and social opportunities; it also assists communities in planning public works projects and coordinating public and private investments.

The membership of the Headwaters RC&D/EDD is comprised of representatives from nine conservation districts, seven counties, 14 municipalities and at-large members. At-large members represent local development corporations, small businesses, minorities, tourism, labor, industry, lending institutions, farming and ranching, and any other interested groups or individuals.