Since Tawas City's founding, the community's economy has been a major factor influencing land use and development patterns. The rich natural resource base of the area: forest lands, Lake Huron and wildlife, combined with the protection offered by Tawas Bay, inspired the founding of the city and provided resources to support a lumber industry. The shoreline, as the transition zone between land and water, became the focus of the community, with the city developing in a linear fashion along the bayshore. Tawas Bay continues to serve as a harbor of refuge, used by large freighters to escape severe storms on Lake Huron.