Pronounced “Stillakum”, the oldest incorporated town in the State of Washington, was chartered in 1853; its name derives from that of an Indian chief. Set amid old orchards and flower gardens, its quaint houses drowse on a hillside above the shore of Puget Sound. McNeil and Anderson Islands and Tacoma’s house-covered hills are visible from the village streets. The pastoral picture of comfortable old homes along the quiet avenues is broken here and there by the sharp lines and bright colors of a jaunty modern house. In 1849, Thomas M. Chambers, an American who had taken a donation claim near by, was ordered to leave by Doctor William F. Tolmie of the Puget Sound Agricultural Company, a subsidiary of the Hudson’s Bay Company. Chambers not only refused to vacate but urged other Americans to settle here, and colonization of the district began. The Hudson’s Bay Company claimed grazing and other land rights under the treaty of 1846, and early American settlers lived in a state of unrest until the controversy was finally settled in their favor. LaFayette Balch founded the town in 1851 by erecting a store and trading center.
Today, Steilacoom is a residential community with a rich historical past. Established as a National Historic District in 1974, the city has 32 buildings and sites listed on the National Register of Historic Places.