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 2010 census the population was 3,246. 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.Butte is often considered part of nearby Palmer.