Inchelium is a census-designated place (CDP) in Ferry County, Washington, United States. The population was 389 at the 2000 census. Inchelium was relocated from an earlier site in the early 1940s. Old Inchelium had been located on the banks of the Columbia River before the construction of the Grand Coulee Dam. As the waters rose behind the dam, the town had to be moved. A description of life in the last years of Old Inchelium and of the move can be found in Lawney Reyes' memoir White Grizzly Bear's Legacy: Learning to be Indian and his history/memoir B Street: The Notorious Playground of Coulee Dam.