Butte Valley is an unincorporated community and census-designated place named for a former settlement in Butte County, California, United States. It is located 5.5 miles southeast of Chico. A post office operated at Butte Valley from 1861 to 1871, when it was re-located to Durham. Butte Valley sits at an elevation of 351 feet. The 2010 United States census reported Butte Valley's population is 899.