 DE 1 begins at the Maryland border in the Delaware Beaches community of Fenwick Island in Sussex County , where the road continues south into Ocean City , Maryland as MD 528 . From this point , DE 1 heads north on four @-@ lane divided Coastal Highway . A block after the state line , the route intersects the eastern terminus of DE 54 . The road continues north through business areas with some residences a short distance to the west of the Atlantic Ocean . DE 1 leaves Fenwick Island and heads into Fenwick Island State Park , running along a narrow strip of land with the Little Assawoman Bay to the west and the Atlantic Ocean to the east . The route passes a small area of residential development before it goes through more of the state park . The road enters South Bethany , where it passes through residential areas . DE 1 heads into commercial areas in Middlesex Beach and briefly curves northwest before turning north again and continuing into Bethany Beach , where the road name changes to Delaware Avenue . The route runs past residences and comes to an intersection with DE 26 , which heads east into the commercial center of Bethany Beach . The road curves northeast and leaves Bethany Beach as it passes to the east of a Delaware National Guard training site . Continuing north , DE 1 becomes Coastal Highway again and runs between wooded areas to the west and beachfront homes to the east . Farther north , the route crosses into Delaware Seashore State Park , where it travels along a strip of land between the Indian River Bay to the west and the Atlantic Ocean to the east . DE 1 comes to a right @-@ in / right @-@ out access point to the park before it crosses over the Indian River Inlet on the cable @-@ stayed Indian River Inlet Bridge . 
