Dylan did write this at Joan's place in Carmel while staying there with her and her family. Seems to have been inspired by the natural beauty of the location and Joan's record collection (the tune is similar to "The water is wide" and similar folk ballads). He must've been thinking about a sort of "life is music/music is life" meta thing around this time; "The eternal circle" has a similar theme but with concert as metaphor rather than nature.
Dylan did write this at Joan's place in Carmel while staying there with her and her family. Seems to have been inspired by the natural beauty of the location and Joan's record collection (the tune is similar to "The water is wide" and similar folk ballads). He must've been thinking about a sort of "life is music/music is life" meta thing around this time; "The eternal circle" has a similar theme but with concert as metaphor rather than nature.