The town lies alongside Utah State Route 63, near the park's popular Sunset Point.

The climate in this area has stark differences between highs and lows, and there is sparse rainfall year-round.

[7] Reuben C. "Ruby" Syrett built a lodge and cabins at this location in 1916, when the promotion of Bryce Canyon for tourism was just beginning.

[12] If the petition met the conditions of state law and its signers owned the majority of the land by value, the new law required the county government to grant the petition and appoint a mayor and town council from a list of individuals approved by the petitioners.

[11] The Syrett family, owners of Ruby's Inn, had been seeking municipal incorporation for some time, hoping to qualify for a portion of county sales tax revenue to help fund the water system and other community infrastructure.

Three other Utah towns that already had petitions pending, Hideout, Independence, and Powder Mountain, were grandfathered in.

Bryce Canyon City is a company town, consisting solely of the property of Ruby's Inn and the Syrett family, its third-generation owners.