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Developed by ITT Community Development Corporation (Levitt) in 1969, the original development plan encompasses 48,000 home sites on approximately 42,000 acres (17,000 ha) of the 68,000 acres (28,000 ha) 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 (74 km) of freshwater canals and 23 miles (37 km) of saltwater canals.
In 1975, the Flagler County Board of County Commissioners established Palm Coast Service District, which included almost 40,000 acres (16,000 ha). Funds for the district were derived primarily from ad valorem taxes and were used to provide fire services, fire hydrants, street lighting, animal control and emergency services.
As of 2010, there were 35,058 households out of which 15.0% were vacant. As of 2000, 22.4% had children under the age of 18 living with them, 66.6% were married couples living together, 8.1% had a female householder with no husband present, and 22.7% were non-families. 18.6% of all households were made up of individuals and 11.9% had someone living alone who was 65 years of age or older. The average household size was 2.38 and the average family size was 2.68.
In 2000, the city the population was spread out with 18.5% under the age of 18, 4.6% from 18 to 24, 19.7% from 25 to 44, 26.9% from 45 to 64, and 30.2% who were 65 years of age or older. The median age was 51 years. For every 100 females there were 90.4 males. For every 100 females age 18 and over, there were 87.6 males.
In 2000, the median income for a household in the city was $41,570, and the median income for a family was $45,818. Males had a median income of $31,976 versus $24,637 for females. The per capita income for the city was $21,490. About 5.6% of families and 7.5% of the population were below the poverty line, including 14.3% of those under age 18 and 3.6% of those age 65 or over.