Deschutes Estuary Restoration Project
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.
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 conceptual rendering of the Deschutes Estuary 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 Dam, 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 a dam 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.
In 2018, the state of 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 dam 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.
The Department of Ecology took the lead on the Deschutes Estuary Restoration Project after the Washington State Legislature transferred the project to Ecology from the Department of Enterprise Services on June 30, 2025. Ecology will partner with the Department of Enterprise Services to restore the Deschutes Estuary.
Since stepping into this role July 1, 2025, Ecology has focused on a smooth and efficient transition. The project is being led by Ecology’s 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 boardwalks 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 Dam 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 understood before construction begins. There are significant logistical and planning 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, recreation features, stormwater management and utility infrastructure, sea level rise resiliency, habitat restoration, landscape design, and dam removal planning.
Ecology will continue working with the Department of Enterprise Services, the Squaxin Island Tribe, and other partners, including the City of Olympia, City of Tumwater, Port of Olympia, LOTT Clean Water Alliance, and Washington Department of Fish & Wildlife to advance the project. This includes reaching a 60% design milestone in late 2025, led by a consultant team at Floyd|Snider and general contractor Kraemer Orion Joint Venture.
In parallel with the project, the Port of Olympia is leading a cleanup of contaminated sediment in Budd Inlet. The port will finish the environmental remediation before contractors remove the 5th Avenue Dam. Construction activities to restore the Deschutes Estuary will start several years before the final step of removing the 5th Avenue Dam.
For more information on project planning and design, please visit the project's frequently asked questions page.
Related links
Contact information
Contact the project team: deschutesestuary@ecy.wa.gov
Bobbak Talebi
Regional Director - Southwest Region
bobbak.talebi@ecy.wa.gov
360-789-9500
Henry Bell
henry.bell@ecy.wa.gov
360-628-2750
Shauna Hanisch-Kirkbride
shauna.hanisch-kirkbride@ecy.wa.gov
360-600-1307
Fran Sant
fran.sant@ecy.wa.gov
360-529-6375