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The western New York firm Smith, Van Valkenburg, & Company bought land in the area in order to exploit the area's lumber resources. George Smith settled in the area in 1862 and founded the community. The East Tawas post office opened on April 15, 1867. A predecessor of the Detroit and Mackinac Railway built a station here, and the community incorporated as a village in 1887 and later as a city in 1895. Tawas Beach was established nearby in 1903 along the railway line in Baldwin Township. A post office opened here on June 12, 1903, until the community was annexed into the city of East Tawas in 1922.
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