Information from the Exploring Southern History blog.
The biggest thing is that the town got its name from the Civil War, although technically, there never was a Fort Walton. Actually, in 1861, the Walton Guards, from Walton County, founded what they called Camp Walton at some old Indian mounds. They were there to protect an entrance to Choctowhatchee Bay.
They selected the mound to use it as the sides of a small earthwork and some Indian remains were uncovered during he construction.
An encounter with Union forces led General Braxton Bragg to sent an 18 pound carronade cannon for the camp's defense from Pensacola.
The camp was abandoned in 1862 and the cannon buried at the site.
It was dug up and now is on display at the Fort Walton Beach Heritage Park.
So, That's the Fort of It. --Old B-Runner
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