Beach City is located in western Chambers County extending for 7 miles (11 km) along the northwestern shore of Trinity Bay.

According to the United States Census Bureau, Beach City has a total area of 4.5 square miles (11.6 km2), all land.

People from Baytown especially began to take advantage of the drawbridge and built small summer/weekend houses or "fishing camps" along the shoreline of the present Beach City.

By the early 1950s, they had nicknamed FM-2354 "Tri-City Beach Road", because the present Baytown resulted from a merger of three smaller towns in 1948.

During that period, Baytown controlled an area larger than the California city of Los Angeles did.

The association explored a number of ideas, including the construction of a breakwater, and then began considering incorporation as a city.

An Incorporation Committee was formed consisting of George Armer, Ruth Hoover, Eloice Jordan, J.D.

Ms. Jordan met with County Judge Oscar F. Nelson, Jr. on March 8, 1966, and presented him with a petition for an incorporation election.

The incorporation of Beach City was finalized by a decree issued by Judge Nelson on April 11, 1966.

To prevent annexation by the nearby city of Baytown, this community voted in April 1966 to become incorporated.

Later Ruth Hoover was appointed by the Council as city secretary and Claude Galloway as deputy marshal.

With Baytown's concurrence, Beach City increased its area on August 19, 1968, by annexing approximately 1,781 acres (721 ha) near Point Barrow Road and taking in McCollum Park.

This annexation brought into the city limits the historic home site of early pioneer Solomon Barrow (1801–1858), whose land included the area where McCollum Park is now located.

On September 22, 1970, Beach City received a petition of 84 residents of Cove to annex the community.

The northeastern majority of the city (north of Seacrest Park Road) is zoned to Barbers Hill Independent School District.