Budd Inlet is the southernmost arm of Puget Sound. Historically, the shores surrounding Budd Inlet were occupied by village sites of the Steh-Chass (or Stehchass), Lushootseed-speaking peoples who became part of the post-treaty Squaxin Island Tribe. The city of Olympia, Washington is located at the southern end of Budd Inlet. A deepwater shipping channel has been dredged providing deep water access to the Port of Olympia which is 25 nautical miles (46 km) from Tacoma and 50 nautical miles (90 km) from Seattle.
Budd Inlet was named by Charles Wilkes during the United States Exploring Expedition, to honor Thomas A. Budd, who served as acting master of the Peacock and Vincennes. A portion of the coast of Antarctica, Budd Coast is also named for Thomas Budd.
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