Industrial parks within the city currently house more than 30 mid to large size businesses with the largest corporation, Palm Coast Data, employing close to 1,000 people. Flagler County has had one of the highest rates of population growth in the United States since 1990, according to the U.S. Bureau of the Census. Further, the University of Florida's Bureau of Economic and Business Research predicts Flagler County will experience one of the highest job growth rates in Florida between 1995 and 2010. 

Developed by ITT Corporation in 1969, the original development plan encompasses 48,000 home sites on approximately 42,000 acres (170 km²) of the 68,000 acres (280 km²) owned by ITT. Paved street and central water and sewer serve all lots developed within the plan. An extensive water management system was designed to replenish the area's water table, which includes 46 miles of freshwater canals and 23 miles of saltwater canals.

In 1975, the Flagler County Board of County Commissioners established Palm Coast Service District, which included almost 40,000 acres (160 km²). Funds for the district were derived primarily from ad Valorem taxes and were utilized to provide fire services, fire hydrants, street lighting, animal control and emergency services.

In September 1999, the citizenry of Palm Coast voted overwhelmingly by a margin of two to one to incorporate as a council/manager form of government. On December 31, 1999, the City of Palm Coast was officially incorporated. On October 1, 2000, all services were officially transferred from the former Service District to the City of Palm Coast. The five-member City Council is elected at large and serves staggered four-year terms. One member is elected as Mayor. The promulgation and adoption of policy are the responsibility of the Council and the execution of such policy is the responsibility of the council appointed city manager. The city hired its first city manager on April 17, 2000.

The city provides a wide range of services including development services, fire services, street construction and maintenance, parks and recreational activities. Palm Coast contracts with the Flagler County Sheriff's Office for law enforcement services. The city currently has plans under way for a new City Hall, a town center, new fire stations, and additional lands for parks. Preservation and protection of environmentally sensitive lands is a key goal of this city as it prepares for the future.