The Tacoma Narrows Airport was first known as the Tacoma Industrial Airport as early as 1958 but was not officially named as such until 1961. One of the first published uses of the airport's current name appeared in a letter to the editor to The News Tribune, wherein a Gig Harbor resident suggested changing the airport to its current name in 1980. The name was changed in 1982 in an attempt to quell residents' concerns over the nominally industrial nature of the airport and its impact on the area.

The Tacoma Narrows Airport has had a tumultuous history, consisting of legal issues involving the land usage, securing funding, and resident concerns among others. The land was obtained through condemnation proceedings in 1961, when the City Council authorized an application to submit to the FAA in a 7-2 vote. City Council approval, however, did not reflect the approval of the residents. In an initiative headed by Stanford Pulliam, residents sought to put the airport (often referred to as the “Peninsula Airport”) to a public vote. If this initiative was approved, it would also prohibit the city spending any money on the airport unless voted on by the electorate. The initiative was stopped when Judge Bertil E. Johnson found that the initiative was a referendum and did not abide by the proper city ordinances. This ruling allowed the city to proceed with hearings regarding the value and further steps of action regarding the court-reinforced condemnations.

Funding remained an issue, as the city estimated that the cost of the airport and the clearing of land, grading of ground, and paving would amount to about one million dollars. However, in January of 1968, there were only enough funds to provide for the construction of the north taxiway. This would mean that if a plane did not land in a short enough distance, they would be required to taxi-back on the runway to the closest taxiway exit. This presented a significant safety hazard, as it prevented aircraft from exiting the runway in a timely manner. In order to secure the funds for the remaining taxiway, an ordinance was created and presented to the City Council in May of 1968 which would take the required $500,000 from the city's LID guaranty fund and allocate it into the airport construction fund. This $500,000 would also be matched by the FAA to allow for significant construction to occur.