Shortly after the PBY Catalina became operational, the United States Navy started to look for its next flying boat. The PB2Y was intended to work alongside the PBY but the PBY turned out to be a more versatile aircraft.
The Consolidated PB2Y Coronado won a 1935 United States Navy competition for a patrol bomber flying boat. The competition had called for a four engine seaplane superior to the Catalina. Two aircraft builders were asked to design the plane, Sikorsky in June 1935 and Consolidated on July 27, 1936. The Consolidated was eventually chosen.
The wing floats retracted into the wingtips.