Panama City is the largest city in (and country seat of) Bay County. Panama City is also in the heart of the Panama City-Lynn Haven-Panama City Beach Metropolitan Statistical Area. George West was the first developer of the area and he gave the town the name because it's on a direct line connection Chicago and Panama City, Panama.

Panama City is almost surrounded by St. Andrews Bay and that allowed for the development of a protected harbor along the Intracoastal Waterway. Both the Panama City and St. Andrews Marinas can provide docking services for marine vessels up to 130 feet in length. However, as much as this is prime real estate on the Gulf Coast, it is also often in the crosshairs of hurricane weather. And as mild as most winters in the region are, the winter of 2010 saw temperatures drop to 15°F.