Formerly known as the Village of Bohemia, Chesapeake City owes its existence to the Chesapeake and Delaware Canal. From the time work began on the canal in 1824, the village became a hub of activity and a thriving port, creating a community of wealthy merchants, bankers, caterers, canal administrators, teachers, and others. Homes, stores, warehouses, and shops sprang up as canal traffic increased. A century after the canal opened, federal takeover and a series of improvements to the canal and road system brought major changes to the community and local economy. The canal was widened and deepened, making passage easier and faster for ships and eliminating the need to stop. In 1948, an improved bridge over the canal allowed supertankers to pass through but bypassed the town, reducing visitor traffic and isolating the community. Today Chesapeake City extends both north and south of the canal, and many areas are listed on the National Register of Historic Places, attracting visitors seeking its historic architecture and character.