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Butte is a census-designated place (CDP) in Matanuska-Susitna Borough, Alaska, United States. It is part of the Anchorage, Alaska Metropolitan Statistical Area. At the 2020 census, the population was 3,589, up from 3,246 in 2010. Butte is located between the Matanuska River and the Knik River, approximately 5 miles (8 km) southeast of Palmer. It is accessible via the Old Glenn Highway.