Situated along the Potomac near the birthplaces of George Washington, Robert E. Lee & James Monroe, Colonial Beach prospered as farmland for the landed gentry during the 1700s.  By the late 19th century, the lure of the beaches & waterfront property began the building of large Victorian houses & quaint hotels.  Shortly after riverboats began running & brought tourists in large numbers, with dance halls and a period of legalized gambling making the town a favored weekend resort.

Colonial Beach earned the name of "Oyster Capital of the Potomac," with the many skirmishes fought just offshore during the 1950's Oyster Wars.