In the north, the spine of the Chugoku Mountains borders Shimane and Yamaguchi prefectures, and in the south is the coastline of the Seto Inland Sea (Hiroshima Bay).

Itsukushima Shrine developed greatly at the end of the Heian period under the patronage of Taira no Kiyomori and gained influence in the region.

As the shrine was occasionally destroyed by fire or natural disasters, the Kamakura shogunate, ordered many metal casters moved to the area on the opposite bank (present-day Honmachi, Hatsukaichi City), and the accumulation of living and rebuilding materials such as salt and wood began.

Following the Meiji restoration, the town of Hatsukaichi was established within Saeki District, Hiroshima on April 1, 1889 with the creation of the modern municipalities system.

In terms of national politics, the city is part of the Hiroshima 2nd district of the lower house of the Diet of Japan.