Pass-A-Grille, which is the most southern tip of St. Pete Beach, is thought to have gotten its name from the Cuban fisherman, known as "Grillers", who camped along the waters edge of the island and would smoke their fish before returning home. Traveling thru the pass, you could see the fires on the beaches thus Pass-A-Grille. Soon settlers began to make Pass-A-Grille their home and in 1902 the first store was built on Long Key. In 1905, Pass-A-Grille opened a Post Office and in 1911, Pass-A-Grille was incorporated as a town and twenty -one residents voted at the first election. In 1914 electric came to Long Key Island and in 1922, the island's first fire station was established.

In 1928, Thomas Rowe built the Don CeSar, a historic landmark that has become known around the world. It has 275 rooms and is ten stories tall. Opening night, the Don CeSar hosted over 1500 guests for a night of dinner and dancing. The depression hit the Don CeSar hard and in the early 40's, the government purchased the hotel and turned it into a hospital and rehabilitation center and in 1944 it became one of the areas first hurricane shelters for residents and pets. In 1945, a Veterans Administration office was moved into the Don and it was stripped and painted army green. In 1969, facing massive renovation costs, the government left the structure and the County was prepared to tear it down. Due to an active citizens group, Mr. William Bowman learned about the Don CeSar and in 1972 purchased the building. The Don CeSar was reopened in 1973 and gained the nickname, the Pink Palace. Today, it is one of only eight hotels in Florida listed on the National Trust for Historical Preservation.

In 1957 the four communities of Pass-a-Grille, Don CeSar Place, Belle Vista Beach, St. Petersburg Beach and parts of unincorporated Pinellas County came together and created the City of St. Petersburg Beach on the island of Long Key. St. Pete Beach now has more rental accomodations than any other town in Florida. In 1994 voters agreed to change the name to St. Pete Beach in an effort to further distinguish itself from the city of St. Petersburg.