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Salem is a city in Washington County , Indiana , United States . The population was 6,172 at the 2000 census. The city is the county seat of Washington County . GR6 It is the home of Salem Speedway . Its downtown area is on the National Register of Historic Places , as are several buildings within the district. Salem, Indiana is a quiet, small town in Southern Indiana, surrounded by rolling hills and farms. It has become a bedroom community for the Greater Louisville, Kentucky area, as well as supplying workers for nearby Bedford and Seymour to the North. There is an old-fashioned small town feel. Many residents are greeted by name where they shop and do business. The town square surrounding the old courthouse still in use (which is one of the loveliest left standing in Indiana) is filled with antiques stores, boutiques, lovely small restaurants and the occasional Attorney's office. Unusual in a town this size is the new Riley Park for Children. Built in 2002, it boasts two and three story fanciful castles and other structures for children's play, along with more expected swings and slides. In September the town celebrates "Old Settler's Day" at the John Hay Center . Set in village of authentic Log structures, the festival features reenactors and local art and crafts.

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