[1] It is located on the western shore of the Great Bend of Hood Canal, near the mouth of the Skokomish River.

The town's history dates to 1900, when Thomas Bordeaux became president of the newly incorporated Potlatch Commercial and Terminal Company.

The company acquired timber lands and began construction of a logging railway to access them.

During shrimp, crab, and salmon harvesting seasons, tribal fishing operations sell their fresh catch.

Water from Lake Kokanee on the North Fork Skokomish River is piped to the powerhouse at Potlatch.