Shady Shores is on U.S. Highway 77 (Interstate 35 East) near the shoreline of Lewisville Lake seven miles southeast of Denton in Denton County. It was incorporated in October 1960. The community's population increased from 543 in 1970 to 813 in 1980. The increase was, in part, a result of the economic development of the area between Dallas and Denton. In 1990 the population was 1,045. The population grew to 1,461 in 2000.