State of Washington was built in 1889 by John J. Holland in Tacoma, Washington. From 1889 to 1902 the vessel was placed on the Seattle-Bellingham route. From 1902 to 1907, the vessel was operated as a standby boat on the Tacoma-Seattle run. Later, the vessel was assigned to the Hood Canal route. In 1913, the vessel was transferred to the Columbia River to be operated by the Shaver Transportation Company. In 1915 the vessel was converted to a towboat. In 1921, the vessel was destroyed by a boiler explosion. Six crewmen were injured and one man was killed.