Cedar Key is a city in Levy County, Florida, United States. The population was 790 at the 2000 census. According to the U. S Census estimates of 2005, the city had a population of 958. The Cedar Keys are a cluster of islands close to the mainland. Most of the developed area of the city has been on Way Key since the end of the 19th century. The Cedar Keys are named for the Eastern Red Cedar, Juniperus virginiana, which once grew abundantly in the area.