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Folly Beach is located at (32.836282, -79.934122). According to the United States Census Bureau, the city has a total area of , all land. The island on which Folly Beach sits was once named "Shem Creek Island" by early settlers who believed it connected with Shem Creek in present-day North Charleston via an underground river or stream; however, no such connection exists today and both bodies of water are tidal creeks that flow into nearby Charleston Harbor and Cooper River respectively.