Deschutes Estuary Restoration Project

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Comment on the Draft Supplemental Environmental Impact Statement through Nov. 9, 2026

We are accepting comments on the Draft Supplemental Environmental Impact Statement (SEIS) through 11:59 p.m., Nov. 9, 2026. 

The Deschutes Estuary restoration project will reconnect the Deschutes River to Puget Sound by returning the body of water known as Capitol Lake to a natural estuary.

What's happening now

Ecology and the Department of Enterprise Services (DES) prepared a Draft Supplemental Environmental Impact Statement (SEIS). This Draft SEIS evaluates the potential environmental impacts of updated design elements. 

We will hold a public comment period for the Draft SEIS. Comments are most helpful when they address specific parts of the document. This may include potential impacts, data sources, suggested mitigation, or new information. All comments become part of the public record.

After the comment period closes, Ecology and DES will review all comments. We will prepare the Final SEIS, expected next year. Agencies may use the Final SEIS when they make permit decisions for the project.

A solution decades in the making

Completing this project will resolve water quality issues, help address invasive species concerns, and re-establish important habitat for juvenile salmonids by restoring 260 acres of estuarine and salt-marsh habitat in South Puget Sound. The project will also restore the public’s use of the water for recreational purposes and generate many other benefits for the surrounding community.

A rendering of the completed Deschutes Estuary, with seabirds soaring above and the completed 5th Avenue bridge in the distance

A conceptual rendering of the Deschutes Estuary Restoration Project. The project will transform Capitol Lake into a thriving wetland habitat with environmental, social, and economic benefits.

Until the mid-twentieth century, the Deschutes River flowed freely into southern Puget Sound at Budd Inlet near Olympia, Washington, forming a rich estuary where freshwater and saltwater mixed over expansive tidal flats. 

For local Tribes, particularly the Squaxin Island Tribe, the Deschutes River and Percival Creek provided fishing and hunting opportunities for salmon, shellfish, and additional resources including beaver, waterfowl, deer, elk, bear, and other animals. The Steh-Chass village was located on the eastern shore of Budd Inlet in what is today downtown Olympia. Steh-Chass houses and canoes lined the beach, and many Coast Salish groups came to this area to trade.

In the early 1900s, the project area became home to other waterfront communities, maritime industries, and recreational uses. Before construction of the 5th Avenue Bridge structure, vessels could make their way two miles up the waterway, all the way to the base of Tumwater Falls. The accessible waterway supported local industry, including the Olympia Brewing Company and the timber trade.

In 1951, the state of Washington constructed the bridge and tidegate structure on 5th Avenue near the mouth of the Deschutes, blocking tidal exchange and creating Capitol Lake at the foot of the state capitol building. By the early 1970s, the lake suffered from excessive sediment deposition, algal blooms, and overgrowth of invasive aquatic plants. Later studies found it to violate multiple state water quality standards including temperature, dissolved oxygen, and fine sediment level.

For nearly 50 years, numerous agencies and entities have pursued a viable long-term management strategy for the area. In particular, the Squaxin Island Tribe have been engaged in conversations around restoring the natural estuary in the Deschutes Watershed throughout this time, having witnessed the decline of salmon and forage fish populations that were dependent on the estuarine habitat. However, an enduring solution for the challenges facing Capitol Lake remained elusive.

Washington initiated an environmental review under the State Environmental Policy Act. The Department of Enterprise Services completed the review in coordination with the Squaxin Island Tribe, governmental and agency partners, and the community, along with support from Floyd|Snider, a local environmental consulting firm.

A Final Environmental Impact Statement was completed in 2022 with the “Estuary Alternative” selected as the management option that would best resolve water quality impairments and increase community recreational use of the area. Under this alternative, the 5th Avenue bridge and tidegate structure would be removed, and a 500-foot-wide opening would replace it, thus reintroducing tidal flow and reconnecting the waters of Budd Inlet and the Deschutes River.

In 2024, the project partners signed a legally binding Interlocal Agreement. This agreement sets long-term funding and governance for managing sediment in West Bay. Sediment management would begin after dam removal and continues through 2050.

Ecology and DES prepared a Draft Supplemental Environmental Impact Statement in 2026. It evaluates updates or additions to the proposed estuary restoration project.

We took the lead on the Deschutes Estuary Restoration Project after the Legislature transferred the project to us from the Department of Enterprise Services on June 30, 2025. We are partnering with the Department of Enterprise Services to restore the Deschutes Estuary.

The project is being led by our Southwest Region Director, Bobbak Talebi, along with a team of staff members who collectively bring decades of experience managing complex, impactful projects.

Benefiting from restoration

Restoring the estuary will create many social, cultural, environmental, and economic benefits for the region, including opportunities to:

  • Create a wetland habitat favorable to wildlife that advances recovery for coho and chinook salmon, as well as orcas.
  • Restore a landscape that has cultural and spiritual significance to the Squaxin Island Tribe.
  • Build a new 5th Avenue Bridge with separate lanes for vehicles, bicyclists, and pedestrians.
  • Design public access features that overlook vibrant and expansive shoreline habitat and feature Tribal art.
  • Protect environmental health by improving water quality and reducing costs of cleanup.

To see the full list of benefits, please visit the Deschutes Estuary Restoration Project website.

The Deschutes Estuary Project includes the removal of the 5th Avenue fish barrier and construction of a new bridge and public access points.

Looking ahead

This large-scale urban restoration project encompasses a range of complex and interrelated components that must be thoroughly planned for and designed before construction begins. There are significant logistical challenges due to its location in a dense urban environment near the Washington State Capitol Campus, a high-traffic area frequently visited by the public. The project site is also situated alongside numerous businesses, major roadways, and critical city infrastructure. Key design elements include bridge engineering, pedestrian and multi-modal transportation features, stormwater management and utility infrastructure, sea level rise resiliency, habitat restoration, landscape design, and fish barrier removal.

Ecology is advancing the project in partnership with the Department of Enterprise Services, the Squaxin Island Tribe, and other regional and state partners, including the City of Olympia, City of Tumwater, Thurston County, Port of Olympia, LOTT Clean Water Alliance, Washington Department of Fish and Wildlife, and Washington Department of Natural Resources. The project reached the 60% design milestone in early 2026, led by Ecology alongside the design consultant team at Floyd|Snider and general contractor Kraemer/Orion Joint Venture. Ecology expects to complete the design and permitting process for the project in mid-2027.

In parallel with the project, the Port of Olympia is leading a cleanup of contaminated sediment in Budd Inlet. The port is planning to finish the environmental remediation before contractors remove the fish barrier and tidegate structure at 5th Avenue. Construction activities to restore the Deschutes Estuary would start several years before this final step.