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The Spray Beach Hotel was built in 1891 following the completion in 1887 of the railroad bridge over the bay, with a spur that stopped in Spray Beach. There was a dock at 23rd Street where a few catboats were moored for the use of the hotel's guests. This activity appeared to have led to the formation of Spray Beach Yacht Club in or around 1922, under the direction of the first commodore, Herman G. Schanche. In 1924, the first clubhouse was erected, about half the size of the current Junior Clubhouse.

From its early days as a modest gathering house for bay sailors to the current modern facility serving a diverse variety of boating enthusiasts, Spray Beach Yacht Club has grown and prospered. Spray Beach Yacht Club strives to meet its mission to promote yachting, teach sailing, foster athletic sports upon the water and promote social functions and friendship among yachtsman.