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Coral Gables was one of the first planned communities, and its planning was based on the popular early twentieth century City Beautiful Movement. It is infamous for its strict zoning regulations. The city was developed by George Merrick during the Florida land boom of the 1920s. The city’s architecture is almost entirely Mediterranean Revival style, mandated in the original plan, with an emphasis on Spanish influence in particular, such as the Coral Gables Congregational Church, donated by Merrick. The domed Catholic Church of the Little Flower was built somewhat later, in a similar Spanish Renaissance style. Early in the city’s planning and development, Merrick shared his vision for Coral Gables as “a most extraordinary opportunity for the building of ‘Castles in Spain’,” as explored in Coral Gables historian Arva Moore Parks’ 2006 book George Merrick’s Coral Gables: Where Your ‘Castles in Spain’ are Made Real. Merrick’s success in executing this vision for the city would catch the attention of Spain’s King, Alfonso XIII, who awarded Merrick the Order of Isabella the Catholic for his support of Spanish culture in Coral Gables.

By 1926, the city covered 10,000 acres (4,000 ha) and had netted $150 million in sales, with over $100 million spent on development. That year also saw the opening of the Biltmore Hotel and Gulf Course, a major landmark in region.

Merrick meticulously designed the city with distinct zones. For example, he designed the downtown commercial district to be only four blocks wide and more than 2 miles (3.2 km) long. The main artery, now known as Miracle Mile, bisected the business district. Merrick could boast that every business in Coral Gables was less than a two-block walk. The city used to have an electric trolley system, which was replaced by the popularity of modern automobiles, but now a new free circulator trolley system, initiated in November 2003, runs down Ponce de León Boulevard. Another distinctive and character-defining feature of the city planned by Merrick are the themed Coral Gables Villages that date to the 1920s and were designed to expand the city’s architecture beyond Spanish influence to include Italian, French, and Dutch South African among others.