Conveniently located between Seattle and Tacoma, only 30 minutes from Sea-Tac Airport, with first-class hotels and exciting attractions, Federal Way is the place to visit. Start your day with a walk along the beach in one of our waterfront parks, spend the middle of the day riding the roller-coaster and other rides at our Six-Flags theme park, and end the day with a play at the Knutzen Family Theatre. Not to mention taking a swim at the Weyerhaeuser/King County Aquatic Center (former host to the Goodwill Games and many national and international swimming and diving competitions), taking in a softball game at one of the premier facilities for soccer and softball on the West Coast (Celebration Park), or shopping at one of our many retail outlets.

As part of the Washington State Growth Management Act of 1990 (GMA), Federal Way, along with other Puget Sound suburban cities have identified Potential Annexation Area's (PAA's) as areas of unincorporated King County that they feel could best be serviced by them. Federal Way has indicated interest in Auburn Hills (east of the city to the Auburn city limits), Lakeland (south and east of the city to the King/Pierce County border and east to the Auburn city limits), and Star Lake (north and east of the city to the Kent city limits). In 2004, the city annexed the Northlake, East Redondo, and Parkway neighborhoods into the city, adding over 2,700 people and nearly 1 square mile (2.57 km²) of area. Other possible annexation areas include the Jovita and Camelot neighborhoods.

In February 2007, the city announced formal plans to annex the majority of unincorporated land on its east border as one PAA named East Federal Way, comprising the Star Lake, Camelot, Lakeland, and Jovita neighborhoods, and a strip of road connecting them. Annexation of the area would add 20,000 people and nearly 7 sq. mi (18 km²) to the city, creating the 6th largest ciy in Washington by population, at over 106,000 residents and nearly 29 sq mi (75 km2). (75 km²)[13]

On August 21, 2007, residents of the proposed East Federal Way annexation area rejected annexation to Federal Way by a 66% to 34% margin. Opponents of the plan, favoring remaining under direct King County government, asserted fears that increased density and higher taxes would result from annexation despite proponents showing studies that taxes and fees would be unchanged