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Sutter is an unincorporated census-designated place in Sutter County, part of the Yuba City Metropolitan Statistical Area in the Sacramento Valley.

The town began as a settlement called South Butte, established near the Butte House stage station, and it got its first post office on August 7, 1871.

In January 1888 the new town of Sutter City was laid out during California's late-1880s land boom, with ambitions to become the county seat because it sat near the geographic center of the county.

Sutter City's hopes faded because the railroad line projected to pass through town was never built, and it never became the county seat.

The post office name was shortened from Sutter City to Sutter on January 26, 1895.

Beside the old Sutter Cemetery west of town stood a one-room schoolhouse where classes were famously dismissed whenever a funeral was held.

Sutter covers about 3 square miles of flat valley land at an elevation of only 75 feet.

Sutter had a population of 2,997 at the 2020 census, up from 2,904 in 2010, continuing steady growth from just 1,219 residents in 1960.

The town had 1,064 households in 2020 with an average size of 2.82 people, and about 73.5% of its occupied homes were owner-occupied.

Sutter is a comparatively prosperous farm town, with a median household income estimated at about $94,375 in 2023 and only about 4% of residents below the poverty line.