Wrexham's new manager Brian Little was happy with a point to celebrate his 54th birthday with from this derby clash.
But he had the disappointment of twice watching his side go behind with Chester City showing why they are pushing for the top of the table.
Wrexham were caught napping midway through the first half when a throw-in led to City's first goal.
Home goalkeeper Anthony Williams was clearly taken off guard as Nathan Lowndes headed on from Laurence Wilson's throw and Kevin Roberts looped a 35-yard stunner over the keeper at the back post.
City nearly added a second from Paul Butler's powerful header from Ritchie Partridge's cross, but youngster Wes Baynes, impressing in his first senior game, headed off the line.
Michael Proctor eased Wrexham fears with a fine equalising goal, firing home from ten yards after Neil Roberts' through ball took a deflection and left him clear.
Paul Linwood restored Chester's lead on the stroke of half-time, climbing to head past Williams, again from a Partridge cross.
Wrexham came out strongly after the break and Steve Evans saw a header scrambled off the line before Taylor crossed and Chris Llewellyn's header forced a great save by John Danby.
At the other end Kevin Ellison let Wrexham off the hook by shooting wide and Wilson's low, long shot was saved.
Wrexham changed formation from five to four at the back after making substitutions and it paid off with Proctor's second strike.
It was the first time Wrexham had scored two goals in a match at home since their first home game of the season against Wycombe back in September.