Grayton Beach, Florida, voted the most beautiful beach by Southern Living magazine, was the first community established in South Walton, some time in the late 19th century. It was named after an Army major, Charles T.Gray, who built a home with his wife Elizabeth in Grayton in 1885, according to legend. A few years later, their home burned down along with all of their possessions and it was another 30 years before Grayton would be settled again.
Today's Grayton Beach is a historic district with many of the old cottages nicely restored. Grayton Beach is best known for its incomparable natural beauty in Grayton Beach State Park, which borders the Gulf of Mexico and most of Western Lake. Western Lake, one of 17 rare coastal dune lakes in South Walton, is a favorite with campers and outdoor enthusiasts. It also has a public dock on scenic Western Lake where one can take their canoe or kayak and explore one of the largest of the dune lakes.
There are several art galleries, antique shops, restaurants, including the popular Red Bar, a Bed and Breakfast, a general store, salons, boutique retail and gift shops, and even a Starbucks in Grayton Beach where locals and visitors can go to pass the time and grab a bite to eat after a day at the beach.