Settlements on Cape Cod were established shortly after the Plymouth settlement, Sandwich in 1637; Yarmouth in 1639; and Barnstable in 1640. Because of the sandy soil conditions, agriculture on Cape Code has been limited, but due to its location and harbors, the Cape has always had an excellent fishing industry. Since the Cape is surrounded by water on three side, the weather is more moderated than in the rest of the New England, with warmer winters and cooler summers. With the advent of the Cape Cod Canal, the Cape is now technically an island, with only bridge and ferry access for vehicles.

Cape Cod consists of four portions: The Upper Cape is the section of Cape Cod closest to the mainland that includes the towns of Bourne, Falmouth, Mashpee, and Sandwich. The Mid Cape includes the towns of Barnstable, Dennis and Yarmouth, and features many beautiful beaches, including warm-water beaches along Nantucket Sound. The Lower Cape is the narrower portion of the cape that bends sharply to the north, and includes the towns of Brewster, Chatham, Harwich, and Orleans. The Outer Cape is the tip of the cape, containing the towns of Eastham, Provincetown, Truro, and Wellfleet, and is home to some of the most popular beaches in America, namely Coast Guard and Nauset Light beaches.

During the early period of Cape Cod's settlements, the cold winters and lack of alternative fuels caused much of the local forest areas to be cut down for firewood. The cleared area was used to grow what crops the soil would support, and supplemented the fishing industry to feed the population. When the United States began to settle more fertile lands to the west of the original colonies, and railroads were established to move goods across the country, Cape Cod residents were able to import much of their food and fuel. As a result, much of the forest areas on Cape Cod has been able to regrow. Most of the Industrial Revolution passed the Cape by because of its lack of water power, leaving it to further develop its fishing Industry.

Cape Cod currently has about 230,000 permanent residents, but during the months between Memorial Day and Labor Day, there are many times that population due to tourists visiting the area. Many businesses in the area are only open during this time of year, closing eight months of the year in the "off-season." Cape Cod is also known for the affluent residences on the nearby islands, such as Martha's Vineyard and Nantucket.