Physical Characteristics. Bay County is in the western portion of the Panhandle and is adjacent to the Gulf of Mexico and a series of bays. It is bordered on the west by Walton County, on the east by Calhoun and Gulf counties, and on the north by Washington and Jackson counties. The county has 757.59 square miles of land and 123.78 square miles of water for a total of 881.37 square miles. The average January temperature is 53.2 degrees Fahrenheit, and the average August temperature is 81.9 degrees Fahrenheit. The average annual rainfall is 57.86 inches.
History. Bay County was established from Washington County in 1913 and named for St. Andrews Bay, which borders the county. During World War II Panama City developed as a ship building and industrial center.
