Diamond City was a settlement on the eastern end of Shackleford Banks, in Carteret County, North Carolina, United States. Shackleford Banks is the westernmost island of the Cape Lookout National Seashore, which extends for 56 miles from Beaufort Inlet to Ocracoke Inlet. Originally named Lookout Woods, the title was later renamed to symbolize the black diamonds painted on the Light Station in Shackleford Banks.