Panama is a city in Shelby County, Iowa, United States. The population was 212 at the 2000 census.
Began as a village known as “Crandall’s Station” during the construction of the Chicago, Milwaukee and St. Paul Railway. The City was officially platted by the Milwaukee Land Co. on April 12, 1882.
Panama is located at 41°43′36″N 95°28′27″W / 41.72667°N 95.47417°W / 41.72667; -95.47417 (41.726691, -95.474235).