The centre part was built immediately prior to the 1962 British Empire and Commonwealth Games as an athletes' village due to its proximity to Perry Lakes Stadium in neighbouring Floreat.

In 1917, the Perth Road Board purchased the Lime Kilns Estate of 1,290 acres (522 ha), situated between the Endowment Lands and the city, thus linking with the ocean beach.

On 9 December 2005, City Beach Senior High School was closed by the Department of Education and Training due to a lack of new student enrolments and the opening of Shenton College 5 kilometres away in 2000.

There are expansive sand dunes and bushland areas along the coast, which are home to wildlife such as hawks, mice and rabbits, and the occasional dugite.

under repair, and should not be entered, as the presence of people interferes with the rehabilitation of the dunes native plant and animal wildlife.