Who Owns Crab Island: Jurisdictional Issues Over Destin Sandbar

Who Regulates Crab Island in Destin, Florida?

Driving over the Marler Bridge in Destin, you may spot hundreds of boats and thousands of people gathering on the famous submerged sandbar known as Crab Island. Once a local secret, this vibrant hangout has become a staple of Destin tourism.

Crab Island, located just north of the Destin Harbor, has seen massive growth in popularity over the years. It started as a quiet boating hotspot but quickly evolved into a floating attraction with food vendors and floating stages dotting the shallow emerald waters.

Who Owns Crab Island?

Although it’s closely tied to Destin’s identity, Crab Island doesn’t actually fall within Destin city limits. Instead, it lies within unincorporated Okaloosa County—making county officials the first layer of regulatory oversight.

However, it gets more complicated. During a series of Okaloosa County Commission meetings, it was confirmed that the sandbar also lies within the boundary of the Gulf Islands National Seashore, making the National Park Service (NPS) a key regulatory authority as well.

Current Rules and Vendor Regulations (2025)

Because of overlapping jurisdictions, Crab Island is jointly managed by both Okaloosa County and the National Park Service. The County has largely deferred to the NPS for setting operational policies.

Any vendor wishing to operate on Crab Island must now obtain a Commercial Use Authorization (CUA) permit from the National Park Service. This includes floating restaurants, mobile food boats, inflatable rentals, and shuttle services.

Once approved at the federal level, vendors must then apply for a permit with Okaloosa County. As of 2025, fees for these permits include:

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• - 3% of gross revenue payable to the NPS
• - Monthly base fees starting at $400 depending on the size and type of operation

- Additionally, vendors must comply with strict rules regarding:

• - No overnight anchoring of commercial vessels
• - Restroom access requirements for all commercial operators
•  

What This Means for Visitors

If you're planning a visit to Crab Island, you’ll still find food boats and floating stages—but they’re fewer in number and more regulated than in years past. Expect a more organized and safety-conscious experience.

The National Park Service has also begun routine patrols in partnership with local law enforcement to ensure vendor compliance, environmental protection, and public safety.

Looking Ahead

The future of Crab Island will likely include more ecological protections and tighter limits on commercial activity. But for now, the iconic floating playground remains one of the top attractions in Destin—just with a little more structure than in the past.

To plan your visit or book a boat rental to Crab Island, call Destin Vacation Boat Rentals at (850) 650-2628 or contact us online.