Lacey is a fast growing suburb just north of Olympia. Lacey was founded in the late 1890s. The town was not much more than St. Martins University, a plywood mill and some farms until the 1950s, with the expansion of government jobs, the state's first indoor mall, and better transportation brought growth. Lacey exploded in growth and was incorporated in 1966. Today the population is over 33,000 and it seems this city may overtake Olympia as Thurston County's largest city.
Future growth including high-rise development is expected to take place near the city's southern border at Hawks Prairie.