The peninsula on which this town is situated is shown on the Moseley Map of 1733 as "Shepard's Point". In 1852, John Motley Morehead purchased some 600 acres of property from the Arendell family. It was his intention to raise a new town on Shepard's Point to accommodate the development of harbor facilities. With the completion of the Atlantic and North Carolina Railroads to this site in 1857, the Shepard Point's Land Company was incorporated and the first lots in the newly surveyed town were sold in November 1857. The first post office for Morehead City was approved on February 28, 1859. The Town of Morehead City was established as a commercial development by the Shepard's Point Land Company, and was named for John Motley Morehead, President of the railroad and twice Governor of North Carolina. [The bill of incorporation for the town passed the North Carolina Legislature on February 20, 1861]. The official seal and flag of Morehead City show that Morehead City was incorporated in 1859, the original section of town extended from 24th Street, bordered on the South by Bogue Sound, the only such east-west body of water South of Long Island, NY on the East by the Newport River an on the North by Calico Creek. Due to the curvature of the coast at this point, the Atlantic Ocean lies both South and East of Morehead City.

The Town presently operates under the Council-Manager form of government. Morehead City, an area of approximately 16 square miles, is located in the center of Carteret County approximately 35 miles southeast of New Bern, NC. Population has grown from 4, 359 in 1980 to 7,825 in 2004, largely as a result of a progressive annexation program. Morehead City enjoys a semi-tropical type climate where the summer heat is tempered by a prevailing southeast ocean wind and the winter season is warmed by the Gulf Stream only 50 miles offshore.

Morehead City was the first community in Carteret County to adopt an official armorial seal. This was done in 1953, through an initiative led by Mayor George W. Dill, Jr., City Commissioners Dr. John W. Morris, D.G. Bell, B.J. Garner, F.J. Hall and S.C. Holloway. The local Chamber of Commerce secretary, Joseph Dubosi also helped with the development of the seal. Permission was granted by John Motley Morehead III, grandson and namesake of the late governor and founder of Morehead City, to use the coat of arms and is struck in the colors of black, gold and white. The official seal issued to authenticate documents and is a massive metal device designed by Tiffany's of New York City. It is display in the City Clerk's office at 706 Arendell St. The motto "Auxilio Dei" translates into "With the help of God". As designed for the City, the entire coat of arms is enclosed in a circle bearing the words "Seal of Morehead City, North Carolina--Inc. 1858 and is pictured on official stationary, flag, and City municipal vehicles.