Panama City is located in the northwestern part of the state of Florida and a city and seat of Bay County. It serves as the port of entry of the St. Andrew Bay - an arm of the Gulf of Mexico. The first settlement that was established by the English was known as Old Town and was developed as a fishing village that was later on called St. Andrew. Panama City was then merged with St. Andrew and Melville formed part of the present-day city in 1909. It was during the American Revolution when the area was settled by the loyalists who then grew Indigo, and was able to develop the lumbering and naval store industries in the city.
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