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County had been looking to get back to winning ways after their shock exit from the FA Cup against Kettering in midweek, but were sunk by a goal in each half by Mark Wright's rejuvenated side.
Chester took the lead in the 12th minute following a well-worked move which saw Anthony Barry play in Kevin Ellison on the right, and he advanced to the byline and slipped the ball inside to Ryan Lowe who had the simple task of tapping home from six yards.
In the 18th minute Ellison stung the hands of keeper Russell Hoult with a 20-yard free-kick which had been heading for the top corner.
Mitchell Hanson provided the first real moment of threat for the visitors when his 23rd-minute header from Jamie Clapham's corner was cleared off the line.
A good run by Laurence Wilson just after the half-hour mark saw him find space on the left flank, and he rolled the ball across the edge of the box where Lowe was arriving, but the midfielder scuffed his effort wide of the target.
Lowe called Hoult into action with a curling free-kick from the edge of the box four minutes from the break which the keeper superbly tipped over the bar.
City's advantage was doubled in the 50th minute through Kevin Roberts. Lowe hit a shot which the keeper pushed away with a save low down to his right, only for Roberts to follow up and poke the rebound home.
Jay Smith hit a speculative overhead kick wide of the target, and John Thompson header over from a corner in the 68th minute, but Chester held firm and could even afford the luxury of missing a succession of late chances, notably through Ellison, which would have given the scoreline an even more emphatic look.
There was even time for sub Jamie Forrester to receive a straight red in stoppage time for a shocking challenge on Damien Mozika to compound County's misery.