REHOBOTH BEACH

19th century

By the mid-19th century, the descendants of these landholders were farmers attempting to make a living off the relatively poor sandy infertile land. The town was founded in 1873 as the Rehoboth Beach Camp Meeting Association by the Rev. Robert W. Todd, of St. Paul's Methodist Episcopal Church of Wilmington, Delaware, as a site for Methodist Episcopal Church camp meetings in the spirit of similar resorts further north on the New Jersey shore, such as Ocean Grove. The Camp Meeting Association disbanded in 1881, and in 1891, the location was incorporated by the General Assembly of Delaware (state legislature) as "Cape Henlopen City". In 1893, it was renamed to Rehoboth Beach.

The first boardwalk in Rehoboth Beach was constructed in 1873 and has seen changes in configuration from weather and storms over the years. The Junction and Breakwater Railroad constructed a line from Lewes south to Rehoboth Beach in 1878, running down the center of today's Rehoboth Avenue. The arrival of the railroad allowed visitors to come in from northern Delaware and Pennsylvania and its cities and towns, leading to the beginning of Rehoboth Beach as a tourist destination. After the railroad came to Rehoboth Beach, the center of camp meetings and city life moved to nearby Baltimore Avenue. The original Henlopen Hotel opened in 1879, being replaced with another hotel of the same name on the current site.

20th century

A paved highway was built by the state between Georgetown and Rehoboth Beach in 1925, which helped bring in travelers from the west in the metropolitan areas of Washington, D.C.; Baltimore; other parts of Maryland; and Northern Virginia.

Just north of the town in Cape Henlopen State Park, multiple submarine monitoring towers can be seen from the beach. These towers were constructed by the military after the onset of WWII. The towers would watch for submarines attempting to enter Delaware Bay. They would triangulate the submarines position for nearby artillery batteries at Fort Miles. After the war these towers remained in operation to guard against possible Soviet submarines.

In 1986 tower 9 was renovated to monitor flight traffic around Delaware Bay. The tower is still used to communicate with commercial shipping.

From 1942 to 1943, Rehoboth Beach Airport, which closed in 1987, served as a base, designated as Coastal Patrol Base 2, for volunteers with the Civil Air Patrol, who flew aerial patrols using civilian aircraft in support of Army and Navy anti-submarine operations during the Battle of the Atlantic. Two CAP airmen, Captain Hugh R. Sharp of Greenville, Delaware, and First Lieutenant Edmond Edwards of Newark, Delaware, would go on to be the first civilians to receive the Air Medal after a search and rescue mission on July 21, 1942, where they rescued one crewmember of another CAP aircraft which crashed at sea.

Rehoboth Beach Airport shut down in 1987 and Rehoboth Shores Estates Community now stands on the former grounds. The Delaware Public Archives placed a historical marker on the site of the former airport commemorating Coastal Patrol Base 2 in 2006.

21st century

Avery's Rest Site, Dodd Homestead, Peter Marsh House, Thompson's Loss and Gain Site, Thompsons Island Site, Warrington Site, and Woman's Christian Temperance Union Fountain are listed on the National Register of Historic Places, maintained by the National Park Service of the United States Department of the Interior.

The town often bills itself as "The Nation's Summer Capital" because it is a frequent summer vacation destination for Washington, D.C., residents as well as visitors from Maryland, Virginia, and Pennsylvania. Vacationers are drawn for many reasons, including the town's charm and the absence of a sales tax in Delaware. The Rehoboth Beach Boardwalk is a 1-mile (1.6 km) long wooden boardwalk adjacent to the beach with restaurants, shops, amusements, and attractions. The Funland amusement park, which opened in 1962, is located along the boardwalk between Delaware and Brooklyn avenues. Several restaurants and shops are located along the town's main street, Rehoboth Avenue. Outside of Rehoboth Beach along Delaware Route 1, are the Tanger Outlets, which operate three locations along the highway with over 130 outlet stores.

Due to its proximity to Washington, D.C., Rehoboth Beach is a popular summer destination among members of the United States Congress. Joe Biden, the 46th President of the United States, and First Lady of the United States, Jill Biden, have a beach house outside the corporate limits of Rehoboth Beach in the North Shores neighborhood. This beach house served as their "Summer White House".

Rehoboth Beach has a seasonal beach patrol who are in charge of lifeguarding the one and a half miles that make up the town's beachfront. They operate from Memorial Day weekend into the following fall season. The beach patrol is on duty every day between Memorial Day until Labor Day from 10 am until 5 pm on weekdays, and 10 am until 5:30 pm on weekends.

Rehoboth Beach is also known as one of the mid-Atlantic coast's popular LGBT-friendly getaways. LGBT tourists have been visiting and residing in the town for generations; however, the movement toward becoming gay-friendly began with the town's culinary renaissance in the 1980s. The visible presence of more LGBT people during this era and the resulting community backlash coincided with the national AIDS crisis and the Moral Majority. During the 1990s, a coterie of gay and lesbian activists challenged the town's anti-gay policies and sentiments to Create A More Positive Rehoboth (CAMP). Through this organization's efforts as well as that of other groups, two openly gay town commissioners were elected in the following decade and the town's position on LGBT issues changed. Today, there are a large number of LGBT-owned and operated businesses, and LGBT people are well-represented in town governance. Susan Stewart was elected as the first openly gay mayor of Rehoboth Beach in 2026. Summer activities include going to the LGBT-frequented stretch of beach near Queen Street at the south end of the boardwalk, known as Poodle Beach. Poodle Beach tends to attract gay men, while North Shore Beach within Cape Henlopen State Park tends to attract lesbians.

The Rehoboth Beach Bandstand is located on Rehoboth Avenue near the boardwalk and serves as a free open-air music and entertainment venue in the summer months, with performances from over 50 bands during the season. Performances have been held at the Rehoboth Beach Bandstand since 1963.

Reader's Digest named the Rehoboth Beach Boardwalk as "Best of America" and featured it in the May 2006 issue. Additionally, AARP has named Rehoboth Beach as one of five dream towns as "Best Places to Retire".

The town has several festivals including the Sea Witch Festival, the Rehoboth Beach Independent Film Festival, and the Rehoboth Beach Autumn Jazz Festival every year.

The Clear Space Theatre Company, a professional theater company, offers a year-round schedule of musical and dramatic productions in the Rehoboth Theatre of the Arts.

Dogfish Head Brewery's original brewpub is located on the town's main strip Rehoboth Avenue. The location has grown in years as a popular destination for American craft beer enthusiasts. Grotto Pizza was founded in Rehoboth Beach in 1960 and has grown to 23 locations throughout the state of Delaware along with parts of Maryland and Pennsylvania.

The restaurant scene in Rehoboth Beach was traditionally centered in the downtown area, which remains competitive. In the 21st century, a restaurant scene has begun to develop along the Delaware Route 1 corridor, where parking is more available and accessible.

In 2011, the city passed a smoking ban covering parks and playgrounds, but sparing the beach and boardwalk. The smoking ban was extended to the beach, boardwalk, and adjacent public areas in 2014. In 2017, the city implemented a ban on tents, canopies, and large umbrellas on the beach, the first such ban in Delaware.

March 2024 parking and permit fees were raised to address budget concerns and rising costs. Metered parking is now $4 per hour.

In May 2025, a curfew was implemented for individuals under 18, restricting them from public places between 11 p.m. and 5 a.m. unless with a parent or guardian. This measure aims to address issues involving large groups of minors late at night.