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Panama City Beach Real Estate > Panama City Beach Community Info Before it was settled properly in the 1800s, the St. Andrews Bay area was home to many native populations and was also an attractive draw for pirates. In fact, legend has it that many a pirate has hoarded treasure at Spanish Shanty Point on Shell Island. Although the area was settled properly in the years before, Panama City Beach was not officially founded until 1936. Surrounding the new city were other cities known as West Panama City Beach, Long Beach and Edgewater. Some years later, these four cities merged and kept the name of Panama City Beach. Panama City’s temperate weather, scenic beaches and ideal location make it a popular location for tourists and new residents.
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