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Explore the Niceville, Florida Online History Center. Historic Niceville, Florida located on Boggy Bayou that opens into Choctawhatchee Bay was originally Boggy, Florida. It was in Walton County until Okaloosa County was formed in 1915 from portions of Santa Rosa County and Walton County. In the 1840's William Nathey from England settled at the head of Boggy Bayou.