Cave City is a city in Independence and Sharp counties in the U.S. state of Arkansas. The population was 1,904 at the 2010 census. The city wa…Cave City is a city in Independence and Sharp counties in the U.S. state of Arkansas. The population was 1,904 at the 2010 census. The city was named for a large cave underneath the Crystal River Tourist Camp, which is the oldest motor court in Arkansas. Cave City is known for its award-winning "world's sweetest" watermelons and holds an annual watermelon festival in July.
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