Until sometime in the 1830s, Native Americans occupied the area around present-day Panama City, Florida. During this time, settlers from Georgia and Alabama began to build there, eventually displacing the Native Americans. Those original homes were located about a mile west of Panama City. However, there was no city there at the time. It was considered rural Bay County, Florida. It was obvious that the main thing that attracted the new settler was the beach with its crystal water and snow white sand. Saint Andrews Bay was also another attraction to the new settlers. There were many who simply built summer homes there.

Throughout the Civil War era, the area remained unincorporated. Saint Andrews Bay became a target of the Union Army due to its export of cotton and other products. The Union soon blockaded the port, keeping ships from entering or leaving. With that a large salt operation was begun. Salt was used by the armies to cure meat for the troops. Boiling pots of seawater left salt in the pot after the water had evaporated. This salt was shipped to the Confederate Army on fast ships, blockade-runners. Bay County saw little of the combat of the Civil War.

Three homesteads were established in what would become Panama City. One was the property of S.L. Slade, located where the courthouse stands today. It was platted as the community of Floropolis. The land on which Harrison Avenue sits was the property of J.R. Irwin. This property was later sold to George Jenks and platted in 1888 as the community of Park Resort. A third home was built west of present-day Harrison Avenue in the vicinity of the Bay Line Depot. This property belonged to G.B. Thompson.

The town’s name then changed to Harrison, Florida after President William H. Harrison. The main street of Panama City is still Harrison Avenue.

Nearby Saint Andrews Bay relied heavily on ships delivering goods and passengers to the area as well as exporting local products. In 1903, the S.S. Tarpon began making weekly trips to the area that would become Panama City, Saint Andrew, Pensacola, Apalachicola, Carrabelle and Mobile, Alabama.

In 1905, G.M. West of Chicago, Illinois, purchased the unsold lots of each homestead and renamed it Panama City after the canal which was being constructed at that time.

In 1908, the railroad arrived in Panama City. It was the Bay Line Railroad and carried passengers, timber to the sawmills, and products for the residents. It ran between Dothan, Alabama and Panama City. Later, between 1909 and 1915, lines were added to Millville, Florida, St. Andrew, Florida and Lynn Haven, Florida.

In 1909, Panama City was incorporated with R. L. McKenzie as its mayor and businesses began to move in. In 1913, it was the county seat of Bay County. In the 1920s there was a land boom in Florida as outsiders discovered the beauty of the area and its recreational value. However, this was stopped by the stock market crash of 1929, which started the Great Depression of the 1930s.
By 1929, the Coastal Highway, now known as Highway 98, was completed, giving travelers easy access to Panama City.

On September 1, 1937, Captain W. G. Barrow and his ship, the U.S.S. Tarpon were caught in a violent storm off the coast of Panama City. The Tarpon sank, losing all its cargo, eighteen of its thirty-one passengers and Captain Barrow.

The U.S. went to war following the attack on Pearl Harbor in December, 1941. As a result of the war, Tyndall Air Field was established near Panama City. During this time, Wainwright Shipyard was opened in Panama City, providing ships for the Navy.

Today, Tyndall Air Field is Tyndall Air Force Base. During its time, it has trained many pilots, including actor Clark Gable during his stint in the Army Air Corp during World War II.
Today, Panama City is one of the world’s most beautiful beaches, accommodating vacationers from all points around the globe.

To learn of Panama City's attractions, click here.