Budd Inlet borders downtown Olympia, Washington, at the southern end of Puget Sound.
The inlet is a southern extension of Puget Sound and reaches inland to Olympia, Washington’s state capital. Its shoreline includes the city’s waterfront, port facilities, parks, and portions of the state-government district.
Budd Inlet was named for James G. Budd, a nineteenth-century California politician and governor. The waterway has long influenced Olympia’s development because the city grew as a maritime, commercial, and governmental center.
Budd Inlet is sometimes confused with nearby Puget Sound features such as Hood Canal and Elliott Bay. Hood Canal is a separate arm of Puget Sound, while Elliott Bay is associated with Seattle.