The Port Washington Parking District was established by the Town of North Hempstead in 1948, with the purpose of establishing, maintaining, and regulating parking facilities and parking meters in Port Washington's downtown area, such as for local commuters using the Port Washington Long Island Rail Road station, shoppers, and merchants.

[6] The construction of this lot more than doubled the commuter parking capacity at the station; its construction required land swaps between the Town of North Hempstead and the Long Island Rail Road, and the rail freight depot was relocated roughly 0.5 miles (0.80 km) from its original location for its construction.

[4][6] In 1969, the boundaries of the parking district were expanded, taking in several incorporated villages surrounding the hamlet of Port Washington (Baxter Estates, Flower Hill, Manorhaven, Port Washington North, and Sands Point).

[7] As of 2022, the Port Washington Parking District operates 12 parking fields, some of which require residential permits exclusively available to district residents or merchants between certain hours and on certain days (specifically the commuter and merchant lots).

[2][8][9] The Port Washington Parking District serves the following communities:[7][10]