About downstream from the dam, SR 240 enters the city of Richland and continues its southeasterly course along the north side of the Yakima River. The highway passes the city's landfill and a suburban golf course before reaching an intersection with Stevens Drive and Jadwin Avenue at the edge of Richland's residential neighborhoods. From the intersection, SR 240 turns southwest onto the six-lane Bypass Highway, which acts as a divided highway with limited intersections that travels around the west side of Richland. Jadwin Avenue continues southeast from the intersection as a business route of SR 240, while Stevens Drive continues north to the Pacific Northwest National Laboratory.