Meaning "swift water" in the Kittitas Indian tongue, Cle Elum aptly describes the Cle Elum River, which tumbles down from Lake Cle Elum, 8 miles to the northeast. The town originated as a gold claim in 1883. Three years later coal was discovered and Cle Elum gained a sawmill, a school and a stop on the Northern Pacific Railroad. Coal Mining in Cle Elum ended in 1963.

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