Panama is a small city located in Shelby County, Iowa. With a population of around 700 residents, it offers a tight-knit community atmosphere. The town is primarily residential, providing a peaceful environment for its inhabitants. Panama features a quaint downtown area with local businesses, contributing to its charm. The city is surrounded by beautiful farmland and picturesque landscapes, making it an ideal location for those who appreciate rural living. Outdoor enthusiasts can enjoy various recreational activities in the nearby countryside, including hiking, biking, and fishing. The city is also in proximity to larger towns like Harlan, where residents can access more amenities and services, including shopping and dining options. The local community is known for its friendly demeanor and hosts several events throughout the year that strengthen community ties, such as festivals and holiday celebrations. Panama exemplifies small-town America, offering a serene lifestyle with a strong sense of community connection.