The area is considered an official part of the Juan Bautista de Anza National Historic Trail.

[2] The unincorporated census-designated place was founded in 1959 when Jack McRae, president of the Arizona City Development Corporation, purchased and developed 2.5 acres (1.0 hectare) of land in the Santa Cruz Valley in the area that would eventually grow to become the 6.2 square-mile modern day townsite.

At the time, the water was considered some of the purest in Arizona; every 14 days samples were sent to the state Health Department and would come back consistently rated 100% pure.

[3] As the community grew, a Contracted United States Post Office with Free E-P.O Box was established on April 1, 1962, and Arizona City began appearing on Rand McNally road atlases in 1963.

[3]Many attempts have been made to establish another form of mail delivery and do away with the outdated method of Free E-P.O Box, last vote being held several years ago (which had originally passed) but a re-vote was conducted in winter when part-time residence (winter visitors) returned and it was rejected.

The CDP is approximately 1,509 feet (460 m) above sea level and located in an area of Pinal County known as the Santa Cruz Flats.

In 2017, a new earth fissure approximately 1.8 miles (2.9 km) long and 30 feet (9.1 m) wide opened up just south of Arizona City, another consequence caused by the rapid consumption of groundwater.

Directly to the west of the CDP is the expansive Tohono O'odham Indian Reservation,[2] which stretches 80 miles (130 km) south to the international border with Mexico.

Along with the rest of Arizona, the community is affected by the North American Monsoon during summer, which brings high winds and occasional heavy rain.

A large portion of the community is located in Pinal County's floodplain, and is very susceptible to flash flooding during heavy monsoon rains.

[11] Due to extensive farmland in the valley, the area is also very prone to dust storms, which can occur any month of the year during windy conditions.

The mean travel time to work was 27.7 minutes, and the median household income was $42,853, with 20.4% of the population living below the poverty line.

[16] Historically, Arizona City's only employers have been the farms that surround the area and the few service jobs that exist within the townsite.

[17] One of these developments is the Dreamport Villages project, which is a $4 billion destination resort that will be located 3 miles (4.8 km) north of Arizona City.

This project alone is expected to create more than 10,000 permanent jobs and will be located 10 miles (16 km) to the northwest of Arizona City, adjacent to Interstate 8.

[22] Every February, the community is host to the Arizona City Daze, which is a street festival featuring vendor booths selling food and merchandise, a car show, a parade, carnival rides, and live entertainment.