When the current state highway numbering system was first posted in January 1964, there was no SR 823. SR 823 from I-82/US 97 Exit 30A to Downtown Selah was added to the state highway system in 1984. Effective April 1 1992, SR 823 was extended northeasterly to Jct SR 821 near I-82/US 97 Exit 26. In 1999, SR 823 was extended south from I-82/US 97 Exit 30A mostly down the middle of the freeway to Jct US 12 and N 1st St within the I-82/US 97 Exit 31 interchange in Yakima. This extension of SR 823 allows local traffic to travel between Yakima and Selah without getting onto I-82. Today, SR 823 is 5.62 miles long.
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