Olympia, capital of Washington, seat of Thurston County, on Budd Inlet and Capitol Lake (at the south end of Puget Sound), at the mouth of the Deschutes River, 29 miles (47 km) southwest of Tacoma. Laid out in 1851 as Smithfield, it became the site of a U.S. customs house and was renamed for the nearby Olympic Mountains. Chosen as the territorial capital in 1853 and incorporated in 1859, Olympia developed port facilities and a lumber-based economy, augmented by oyster farming, dairying, brewing, and other industries. Its harbor serves as the base for a large merchant reserve fleet. The Old Capitol (built 1893) is used as a state office building. The new Capitol Group (completed 1935) stands on a promontory in a 35-acre (14-hectare) park. Located at the base of the Olympic Peninsula, the city is the gateway to Olympic National Park and is the headquarters for the Olympic National Forest. It is the home of Evergreen State College (1967), and nearby Laceyis the site of St. Martin's College (1895). Pop. (1992 est.) city, 35,712; Olympia MSA, 170,155.