Okolona is a former census-designated place in southern Louisville/Jefferson County, Kentucky, United States. It is centered on the intersection of Preston Highway and the Outer Loop. The population was 17,807 at the 2000 census. When the government of Jefferson County merged with the city of Louisville, Kentucky in 2003, residents of Okol…Okolona is a former census-designated place in southern Louisville/Jefferson County, Kentucky, United States. It is centered on the intersection of Preston Highway and the Outer Loop. The population was 17,807 at the 2000 census. When the government of Jefferson County merged with the city of Louisville, Kentucky in 2003, residents of Okolona also became citizens of Louisville Metro. As a result, Okolona is said to be a neighborhood within the city limits of Louisville.