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Federal Way, Washington Federal Way, Washington is a city in King County, Washington, United States. The population was 89,306 at the 2010 Census.Federal Way is currently the 10th largest city in Washington State and the 5th largest in King County, according to the Census Bureau's 2013 population estimate. Originally a logging settlement, the area was first called "Federal Way" in 1929, when Federal Way School District #210 was created. The name derived from Federal Highway U.S. 99 (now State Route 99 or Pacific Highway South), which ran from Everett and Seattle to Tacoma. Federal Way High School opened in 1930, and the local Chamber of Commerce adopted the name in the early 1950s. The city was incorporated on February 28, 1990.