In a small bowl or measuring cup, pour water over yeast. Let stand until yeast dissolves and is bubbly.
In a large bowl, mix together flour and salt. Make a well in the middle of flour and add yeast mixture; mix well.
Transfer dough to a floured surface and knead for about 10 minutes until the dough is firm and springy, working in butter and olives. Shape dough into a ball.
Coat large bowl with 1/2 of olive oil. Place dough in center of bowl and cover with a dishcloth. Let rise for about 1 hour in warm place or until dough doubles in size.
Punch down dough. Cover with dishcloth, and let stand for about 1-1/2 hours or until it doubles in size.
Heat over to 475 degrees. Grease baking sheet with remaining olive oil. Bake bread until golden brown, about 30-35 minutes.