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Key Colony Beach is a small incorporated city in the Middle Florida Keys in Monroe County, located near Mile Marker 53 of the Overseas Highway, just east of Marathon.

Most of the city sits on what was Shelter Key, a 97-acre low-lying island that was marginal land, flooded at periods of high tide, before it was developed.

In the early 1950s, developer Phil Sadowski ran dredges around the clock to fill and enlarge Shelter Key, raising it to six feet above mean sea level, and then cut canals through the fill to create waterfront homesites.

Key Colony Beach was incorporated on September 24, 1957, after local residents voted unanimously to form their own city rather than let the island be swallowed up by a proposed incorporation of nearby Marathon.

Incorporation proved a blessing in 1960, when Hurricane Donna destroyed much of the young city - as its own municipality, Key Colony Beach received its own federal grant to rebuild, while unincorporated Marathon had to share in Monroe County's portion.

Key Colony Beach had a population of 790 at the 2020 census, within a total area of just 0.7 square miles, about a quarter of which is water.

The only road into Key Colony Beach is the Sadowski Causeway, named for the city's founder, which connects the island across Fat Deer Key to U.S. 1, the Overseas Highway.

Although fewer than 800 people live in Key Colony Beach year-round, its population swells to roughly 4,000 during the winter season.

In the 2000 census Key Colony Beach counted 422 households for its 788 residents, a reflection of how many of its homes are seasonal and vacation properties.