Panama City overlooks the Bay of Panama, which is part of the larger Gulf of Panama and the Pacific Ocean. Its wide curve gives Panama City its distinctive waterfront skyline reminiscent of Miami, Florida.
The bay is currently undergoing a clean-up as part of a massive facelift to the waterline that will see park grounds, pedestrian walkways and bike paths, sporting fields and the expansion of Avenida Balboa, one of the city's major roadways that tracks the waterline. Parts of the Panama Bay have also been designated as a special conservation area for the thousands of migratory birds that flock there annually.