Daytona Beach Shores was first organized in 1960 by local business leaders convinced that a smaller community could provide better services to its residents. The City was incorporated on April 22, 1960 and is located between unincorporated Wilbur-by-the-Sea to the south and Daytona Beach to the north.

In the 1970s and the 1980s, the City enjoyed a massive building program. Now about 80 percent of the residents live in high-rise condominiums that stretch along the Atlantic Ocean. In 1997, residents voted in a straw ballot to limit the height of future buildings to 12 stories. The City Council approved the height limit in 1998.

A resort and retirement community, the City has no schools or manufacturing industry, but caters to visitors year-round with miniature golf courses and other family entertainment, including a privately owned Par 3 golf course and City owned tennis and recreation club.  Both are open to the public. According to the Census Bureau, the City has about 4300 residents.