Panama City Beach has become one of the hottest vacation destinations on the Gulf Coast. It is renowned for its white-sand shores, emerald-green waters, water adventures, and numerous tourist attractions. This charming coastal town epitomizes the laid-back lifestyle of Northwest Florida, blending southern charm with a perfect spot for a beach vacation.
How did this village become what it is today? It has a rich history and a deep connection to the development of the county and the nearby city. Let’s examine how this municipality was established and eventually turned into the travel destination it is today.
Foundations of Bay County and Panama City
This county encompasses the area around Panama City Beach. This county originated from parts of Washington and Calhoun Counties in 1913. Several small settlements would eventually combine to become Panama City, the eventual county seat. Millville started as a lumber town and was annexed into the city in 1926. St. Andrews was a fishing village known for salt mining. The settlement called Harrison was located between these other two towns and was involved in the arrival of the Bayline Railroad.
This municipality was initially incorporated in 1909. Robert Lee McKenzie was an entrepreneur and real estate developer who served as the first mayor of Panama City. His cooperation with other businessmen in the bay area enabled the settlements to flourish, eventually leading to the establishment of Panama City in 1909, a name he helped contribute to. The name was chosen primarily due to interest in the Canal and this city’s proximity to the Caribbean entrance.
The Rise of a Port Town: St. Andrews Bay & Shipping Routes
The bay allowed Panama City to serve as a deep-water port. As a result, the city became an appealing location for both merchants and pirates, spurring economic growth and maritime commerce in the Port of St. Andrews.
This port was also located along important shipping routes through the Gulf of Mexico, which further contributed to the development of the city. As more people came to the area, they continued to spread up and down the coast.
Panama City Beach Incorporation: Birth of a Beach Town
In 1929, the St. Andrews Bay Bridge was completed, connecting downtown in the west to the piece of land in the east that would eventually become the Upper Grand Lagoon and Panama City Beach via US-98. As a result, many people began to visit the area that would become a separate coastal town. The bridge was then renamed to Hathaway Bridge.
The area was incorporated into the county in 1936, but it wouldn’t be incorporated as “Panama City Beach” until 1970. At that time, the four communities of West Panama City Beach, Panama City Beach, Edgewater, and Long Beach merged into one coastal municipality.
Military Footprint: World War II and Coastal Defenses
One of the fascinating aspects of Panama City Beach’s background is its significance during World War II. As part of the St. Andrews Sound Military Reservation, it became a site of coastal cannon, with proximity to the Tyndall training gunnery ranges. Additionally, St. Andrews State Park served as a major shipbuilding entity.
The county has made a significant effort to honor the World War II heritage in this region of Florida. The county is seeking designation as a Heritage City for its significant contributions to the war effort, particularly due to the Wainwright Shipyard and Tyndall Air Force Base.
Panama City’s Liberty Ship Shipyard: War‑Time Industry Powerhouse
During the war, there was a massive need for ships to serve in the Navy. The Wainwright/J. A. Jones Shipyard, situated on St. Andrews Bay, built and contributed 108 Liberty ships to the war effort between 1943 and 1945. This wartime effort led to a significant population boom, with the surrounding areas increasing from 20,000 people to approximately 60,000.
This transformation led to a massive economic boom in Panama City Beach and its surrounding towns. The area evolved from a small village to a bustling hub of financial strength, which in turn further spurred the travel industry.
Post‑War Growth: From Fishing Village to Resort Destination
When WW II ended and the need for new ships decreased, Panama City Beach evolved into a tourist-focused coastal spot. The area developed a strong culture around fishing, boating, and beach vacations. For example, in 1951, the St. Andrews State Recreation Area was established, which then evolved into a state park.
In the 1990s, this area established a strong reputation among vacationing college students, largely due to MTV filming its popular “Spring Break” series there. However, it has evolved into a more family-friendly destination over time, with current attractions like Top Golf and the Pirates’ Voyage dinner show, being perfect for families. The Coconut Creek Family Fun Park is another popular spot for traveling parents and children.
This transition gained significant momentum in the mid-2000s, when Panama City Beach experienced a substantial surge in popularity. During this period, numerous high-rise condominiums were built and dramatically reshaped the city’s skyline. This boom in condo construction not only created the modern coastal town we see today but also attracted a new wave of locals and travelers, further solidifying the city’s appeal beyond its spring break roots.
Modern Panama City Beach: Embracing “City Beach” Identity
In the late 20th century, locals began to witness the final phase of the area’s transformation into a premier beach vacation destination. The village embraced this beach identity, and the coastal town’s appeal drew the attention of many family vacationers, spring vacation travelers, and solo adventurers.
With so many people traveling to Panama City Beach, numerous big events started popping up throughout the year. The Thunder Beach Motorcycle Rally now takes place across the city in spring and fall. The Gulf Coast Jam, which is often sold out, is an annual country music festival in late May and early June. The real estate market has also fluctuated in response to increased attention on the city, with prices rising for many years until a recent decline.
Bay County’s Resilience: Hurricanes & Community Rebuild
Every municipality will face obstacles, and one of the major setbacks happened in 2018. Hurricane Michael destroyed much of the Emerald Coast, including Panama City Beach and the county.
However, these communities came together and rebuilt even stronger. Infrastructure was upgraded to protect the city from the effects of hurricanes. Buildings were also rebuilt with more accommodations for hurricane-force winds and floodwaters. The city continued to focus on the vacation aspects of the area, increasing beach access during the recovery process.
Heritage Today: WWII Artifacts & Historic Sites
Today, there are numerous ways to appreciate the history of this war and its impact on this region of Florida. Specifically, there are physical remnants of the role this area played, such as circular cannon platforms at St. Andrews, port memorials, and former shipyard markers.
With the county ramping up efforts to be recognized as a Heritage City, the future looks bright for the continued pursuit of honoring the background of Panama City Beach and the surrounding areas.
Panama City vs. Panama City Beach: Two Sides of the Same Coin
Panama City and Panama City Beach have a very strong relationship. Both communities developed alongside each other over a similar timeline. Although the larger city has a more civic, military, and commercial feel, it is well complemented by the beachfront property atmosphere of Panama City Beach.
Together, these entities have created tremendous growth along the Emerald Coast. The travel appeal of the coastal town and the commercial influence of the big city combine to create a strong community on Florida’s Gulf Coast.
Bay County & the Pre-Beach Era: Lumber Mills to Resort Roots
West Panama City Beach, Long Beach, and Edgewater may have never combined into one city if it weren’t for the lumber operations of the early 20th century. Communities like Millville constructed lumber mills in the area, many of which were operated by German Americans.
These successful lumberyards contributed to the economic boom of the Panama City area, paving the way for multiple settlements to thrive and incorporate. This industry laid the groundwork for economic development in the area.
What the Future Holds: Memorials, Education & Tourism
Reflecting on the past is an important way to appreciate the modern status of a place like Panama City Beach. Without the area’s contributions to war efforts, it may not have become the tourist hotspot that it is today.
Efforts to improve education about its story are ongoing. If the county can successfully be designated as a Heritage City, more funds may become available for potential museums or historical trails. These educational opportunities would make it easier for traveling families to teach their children the value of history.
As you learn the background of this village and the surrounding county, you will come to appreciate these beachfront communities more during your trip. Panama City Beach offers numerous activities that cater to the beach lifestyle, so be sure to learn about the area’s background and its significance during WW II.
Experience History Where It Happened
You can experience a compelling piece of history up close by visiting Panama City Beach for your next vacation. In a place where the past is deeply intertwined with the present, you can walk along beautiful sand dunes, book a dolphin cruise, or enjoy a seafood platter while learning about a vital piece of this country’s past.
If you’re looking to stay in Panama City Beach, Pineapple Paradise at Pier Park is the perfect vacation rental, located on Front Beach Rd. Upscale amenities, comfortable rooms, balcony views of the sunset, and a convenient location will make your vacation in this historically significant beach town even more enjoyable. Pineapple Paradise will serve as a home base from which you can explore cultural sites, historical landmarks, and sun-soaked beaches.
