The State of California sold acre-plots of land for $1 apiece in the Newport area. Anglo-American inhabitation in the area grew substantially following 1870 when a 105-ton steamer named The Vaquero, captained by Captain Samuel S. Dunnells (against warnings posted by surveyors), safely steered through the lower and upper bay of Newport where it unloaded its cargo. James Irvine, upon hearing the astonishing news, quickly traveled from his home in San Francisco to the San Joaquin Ranch. Meeting in Irvine's ranch house near present-day UC Irvine with his brother Robert Irvine and friend James McFadden, they agreed that the newly found port should be simply named "Newport" which is where Newport Beach gets its name. James McFadden built a long McFadden Wharf in 1888.
Beachgoers have flocked to Newport Beach since the Pacific Electric Railway began bringing them in 1905. Attractions include the city beaches from the Santa Ana River to the tip of the Balboa Peninsula, Corona del Mar State Beach, and the beaches at Crystal Cove State Park. Newport Beach is known for good surfing, especially between Newport Pier and the Santa Ana River. At the tip of the Balboa Peninsula, The Wedge offers world-class bodyboarding and bodysurfing. Newport Pier and Balboa Pier draw fishermen and sightseers. A boardwalk runs 2.9 miles (4.7 km) from 36th Street in West Newport, past Newport Pier and Balboa Pier, to between E and F Streets on the Balboa Peninsula for both pedestrians and bikers.
In 1905, city development increased when Pacific Electric Railway established a southern terminus in Newport connecting the beach with downtown Los Angeles. In 1906 (with a population of 206 citizens), the scattered settlements were incorporated as the City of Newport Beach.
The City of Newport Beach was incorporated on September 1, 1906 and adopted its charter on January 7, 1955. The city implements a council–manager form of government, directed by a seven-member council who reside in specific geographic districts, but are elected at-large. Council elections take place in even-numbered years, and council members serve four-year terms. The mayor is chosen annually by the city council.
The annual Christmas Boat Parade started in 1908.
Settlements were filled in on the Peninsula, West Newport, Newport Island, Balboa Island, and Lido Isle. In 1923, Corona del Mar was annexed and in 2002, Newport Coast, East Santa Ana Heights, and San Joaquin Hills were annexed. In 2008, after a long battle with the city of Costa Mesa, Newport Beach annexed West Santa Ana Heights.
In 1927, a home was built at the mouth of the entrance of Newport Harbor that came to be known as the China House of China Cove. The home was built using traditional Chinese architecture. It was a landmark in the Newport Beach Harbor until it was demolished in the 1980s. Some of the original roof can be seen on a home located in the China Cove.
Until 1927 the city's governing body was known as a board of trustees with a president as its head. An act of the Legislature in 1927 changed the board to City Council with a mayor as the head.
Although the politics of California have trended in favor of the Democratic Party, Newport Beach has remained Republican but has become less Republican over time. In 2016, as Donald Trump became the first GOP presidential candidate to lose Orange County since Alf Landon in 1936, Trump won Newport Beach by a margin of 14 points. Trump also won Newport Beach by a margin of nearly ten points in the 2020 election.
Upper Newport Bay is an estuary that was formed by a prehistoric flow of the Santa Ana River. Today it is fed by a small stream from San Diego Creek. Much of Upper Newport Bay is a protected natural area known as the Upper Newport Bay Ecological Reserve, established in 1975.
In 2009–2013, Newport Beach had a median household income of $106,333, with 7.9% of the population living below the federal poverty line.
The marine division of the NBFD is responsible for lifeguarding the nearly 10 million annual visitors to Newport Beach's 6.2 miles (10.0 km) of ocean and 2.5 miles (4.0 km) of bay beaches. In 2013 alone the marine division performed 3,811 water rescues. Newport Beach lifeguards are recognized as the top agency in the nation, considering their relatively small size. They are also recognized as an advanced agency by the United States Lifesaving Association.
The north end of the Newport Harbor channels surrounding Lido Isle has several small business centers and was at one time used as a home by the fishing fleets. On the North East side of the channel, the Lido Marina Village now acts as the local port to many "Newport Party Boats" that can be rented for events, as well as small merchants and local restaurants. It also hosts the area boat show each year, and an organic "Farmers Market" on Sundays, in addition to being the port for the local Gondola Company. In 2014, the center was closed for a renovation. The Lido Village was reopened in 2017 after a complete renovation.
As of February 2020, the California Secretary of State reported that Newport Beach had 57,408 registered voters; of those, 14,097 (24.56% vs. 35.63% in Orange County) are registered Democrats, 27,472 (47.85% vs. 34.16% in Orange County) are registered Republicans, 12,996 (22.64% vs. 25.29% in Orange County) have stated no political party preference, and 2,843 (4.95% vs. 4.92% in Orange County) are registered with a third party. According to a March 2018 report by the Sacramento Bee, Newport Beach has the second highest percentage of conservative voters among large cities in California.