A few weeks back I wrote about a version of Olympia and Thurston County that kept its streetcars, tied them into regional rail, and grew up into something closer to a Pacific Northwest urbanist’s dream. Fun as a distraction, that essay gave me a chance to chase some historical what-ifs toward the best possible outcome.
This one runs the tape the other way. What if development here had gone worse instead of better? What if the highway planners of the 1950s had gotten the route they actually wanted, straight through the heart of Olympia, instead of the one they eventually settled for through Tumwater?
Short answer, it would’ve been bad on its own.
The longer answer, and the real point of this essay, is that a downtown freeway wouldn’t have stayed bad in just one place. Within a decade or two it would’ve run out of room, and the region would’ve ended up building a second, larger highway south of town to relieve it. Olympia would’ve gotten hit twice: once downtown, and once across what’s now protected rural land between the airport and Nisqually.
What Tumwater actually lost, and why it matters here
Local memory likes to say Interstate 5 killed downtown Tumwater. It’s a clean story, and it’s mostly wrong. Tumwater’s old river-based downtown had been dying for decades before anyone even drew up an interstate. The shift started in the early 1900s as railroad routes changed, and the real blow came in 1938, when the new Capitol Way bypassed the historic downtown completely. By the time I-5 construction started in the 1950s, Tumwater’s businesses had already moved toward Trosper Road. The city council signed off on running the freeway through the old downtown canyon partly because there wasn’t much of a downtown left to save.
That doesn’t mean the highway’s arrival was gentle, though. The route needed a 200-foot-wide path cut straight through Tumwater’s historic heart, and people were furious at first. The city council came around once the engineering made sense. In exchange for going along with it, Tumwater got some real concessions: a sewer line tied into Olympia’s system, an upgraded water system near the freeway, and a new Custer Way Bridge to replace the dangerously narrow 1915 Boston Street Bridge. By the time the route opened in 1958, the Trosper Road interchange had taken over as the city’s commercial center for good, and about a hundred buildings had been torn down or moved to clear the way.
There’s an irony underneath all this. Tumwater had already given up something once before, for pretty similar reasons. Back in 1915, the state wanted to dam the Deschutes Estuary to create what became Capitol Lake. Tumwater fought the idea for decades. Leopold Schmidt’s Olympia Brewing Company depended on the estuary’s connection to the Puget Sound to barge goods down to Olympia’s deepwater port, and a freshwater dam threatened both that route and their water rights. The Olympia Power and Light Company also feared the lake would damage their operations. The opposition finally broke at a 1941 town meeting, by which point Tumwater’s commercial center had already started drifting away from the river anyway. The lake was finished in 1951. Seven years later, the same city gave up its downtown to the freeway too, for pretty much the same reason. The thing being protected had already stopped being worth protecting.
None of this had to fall on Tumwater at all. For a while, the actual plan was to run the freeway straight through Olympia instead.
After World War II, Highway 99 funneled all through-traffic straight into the Olympia-Tumwater city centers, and the intersection of Fourth Avenue and Capitol Way became a real bottleneck, with through-traffic and local drivers fighting over the same narrow streets. A 1948 traffic survey started the planning for a limited-access route, called at different points the “Olympia Freeway” or the “Olympia Bypass.” The early designs were ambitious in the worst way.

Around the same time, that same pressure to move traffic through downtown showed up in a real political push to convert Olympia’s downtown streets to one-way. It was a kind of duct-tape-and-bailing-wire freeway, improvised out of streets that were already there.

The proposed route would have run through, or along, the Percival Creek Canyon near where the auto mall sits today, past the area that’s now Marathon Park, and from there crossed Capitol Lake through an underground tunnel or viaduct, coming up at the intersection of Adams Street and Tenth Avenue, right in the city core.

As if a tunnel wasn’t bad enough, engineers also proposed an elevated highway above Seventh Street as a cheaper alternative. It would’ve been a real-life Robert Moses nightmare, splitting downtown Olympia in two. And this wasn’t just idle talk. In the early 1950s, the City of Olympia and the state Department of Highways actually signed an agreement to move forward with the downtown route.
It fell apart in 1954. Not because anyone changed their mind about what it would do to the city, but because a Department of Highways review found it too expensive. Tunneling under a lake, or building an elevated structure through dense downtown blocks, cost more than the state wanted to spend. So engineers shifted to the Tumwater Canyon route instead: solid bedrock, cheaper to grade, and already half-emptied of the businesses that would’ve fought it.
And it’s worth remembering the downtown route wasn’t just a few blocks downtown. Getting from Percival Canyon to the Capitol Campus by tunnel or elevated causeway would’ve meant cutting across a good chunk of what’s now southwest Olympia. The impact on the east side of that route would’ve been just as serious, not some afterthought tacked onto the downtown disruption.
Why that wouldn’t have been the end of it
Here’s the part that makes this counterfactual worse than it looks at first. Say the 1954 cost review had gone the other way, and Olympia got its tunnel or its elevated highway through downtown. What if there was a governor who really liked the idea of a downtown interchange and pushed for it? What if the federal government stepped in to cover extra costs?
That alone would’ve gutted the city core about as badly as the real freeway gutted Tumwater’s canyon. But here’s the thing: a freeway squeezed onto an isthmus between a lake and a bay only has so much room to grow. Once traffic outgrew it, and it would have, there’d be nowhere left to add lanes.
So the same pressure that built the original bottleneck at Fourth and Capitol would’ve built up again, on a larger scale, probably within a generation. And the fix wouldn’t have been to widen the downtown route. It would’ve meant building an actual interstate-grade bypass south of the city, cutting between Olympia Airport and Nisqually to route traffic around the bottleneck entirely. Olympia would’ve ended up with the worst of both options: a freeway carved through downtown that still couldn’t handle the load, and a second, bigger highway carved through the rural south county to make up the difference.
That second highway is the part worth sitting with. Right now, the land between the airport and Nisqually stays mostly rural, and that’s partly thanks to the Growth Management Act’s boundaries. When an interstate bypasses a rural area, it often ends up protecting it. No exit ramp means no incentive for strip malls and drive-thrus, so farmsteads tend to stay whole instead of getting sliced up by rights-of-way. Towns near the freeway often trade their identity for convenience. Places the freeway skipped tend to keep something real, even if it looks like neglect from the road.
In this counterfactual, south Thurston County doesn’t get that protection. It becomes the freeway. The corridor between the airport and Nisqually, still pretty rural today, would’ve turned into the kind of stretch you see near any highway exit: gas stations, chain restaurants, parking lots. The thing that currently protects that land, sitting outside the highway grid, would never have had the chance to exist.
Chase this far enough and the whole regional map starts to shift. In our actual history, Lacey grew up because it was rejecting Olympia’s effort to annex eastwards, and the suburbs spread out along Pacific Avenue and Martin Way instead. Take that away, and the suburban growth pattern here would’ve followed the new southern route instead. Tumwater, already centered on its Trosper Road interchange, would’ve kept stretching east until it ran into Tanglewilde from the south, soaking up the space that Lacey actually grew to fill. Something like the South Sound Shopping Center would probably still exist, just not where it is now. It would sit at a Rich Road or Rainier Road interchange on the new southern interstate instead, anchoring the kind of sprawl that, in real life, never had a highway to grow around.
The lucky accident
None of this was planned as a mercy. The 1954 decision to abandon the downtown route was a budget call, made by engineers weighing tunnel costs against bedrock costs. Highway budget writers don’t think about the impact on the community, no one in the room was thinking about what it would spare. But that’s what it did. Tumwater absorbed one real wound: its historic canyon, cut open for a freeway, after it had already gave up on a similar fight once before over Capitol Lake. Downtown Olympia and rural south Thurston County absorbed nothing. The cheaper option just happened to also be the option that kept the damage contained to one place instead of two.
It’s a strange thing to be grateful for a highway department’s spreadsheet. But measured against the alternative, that’s roughly what happened.





