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Sunset Beach is a tiny three-mile-long sliver of beach with a population of about 2,000 people. It is the southernmost inhabited barrier island in North Carolina.  Commercial development on the island itself is limited, consisting mainly of tourism related business (rental agencies, shops selling beach wear, ice cream, souvenirs, and renting bicycles and such items as umbrellas and beach chairs.  There is also a small grocery).

The island was for many years a narrow strip of sand and myrtle, the only  real business being a fishing pier into the Atlantic Ocean, originally built to allow fishermen to fish over the wreck of the Confederate blockade runner "Vespa".  The island was accessed by a single lane pontoon bridge that opened for water traffic.  In 1954 Hurricane Hazel threw up enough sand to make the island desirable for beach development, and in 1958 Mannon C. Gore began selling lots.  The first houses were of a simple design, intended to be allowed to float off their moorings in the event of a subsequent hurricane. The first house built on the island was Dunes Day in 1959. The only air conditioning was the sea breezes blowing through the open windows. Until the mid 1980's development of the island was limited and much of the land remained uninhabited, perhaps because of the pontoon bridge.  In the late 1980's construction took off and by the early 2000's most of the buildable lots on the island had houses on them.  A limited number of vacant lots still exist scattered around the island.  In November 2010 a new high rise bridge opened allowing 2 lanes of continuous traffic onto and off the island, as well as providing pedestrian/bicycle lanes.

The fishing pier still exists, although extended several times since that original pier as the Vespa disappeared under the sand and the island accreted significant additional land.  The pier provides fishing and pedestrian access, as well as snacks, all for a fee.  

Of particular note is Bird Island, an uninhabited state preserve, the island is home to a variety of coastal birds and other wildlife.  It is presently accessible from the beach at Sunset, at the former Mad inlet (which has migrated back and forth between Sunset Beach and Bird Island over the years) which is currently filled in with sand.