The 35-year-old former world number one has not played the prestigious Californian event since 2001, when she and Serena were booed by sections of the crowd.
Her father Richard Williams has long alleged the family was subjected to repeated racial slurs after Venus withdrew from a semi-final against Serena due to a knee injury.
Explaining her decision to return to the tournament in a commentary on The Players Tribune website, Williams said the criticism directed at her family had left a lasting mark on her.
"I remember the accusations toward me and my sister and our father. I remember the crowd's reaction, as I walked to my seat, during Serena's match in the final. And I remember how I couldn't understand why thousands of people would be acting this way - to a 19-year-old and a 20-year-old, trying their best.
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"There are certain things where, if you go through them at a certain age, you simply don't forget them."
"It was in that moment, seeing Serena welcomed with open arms last year at Indian Wells, that I think I fully and truly realized what being the big sister means," Venus wrote.
"It means that, for all of the things I did first, and all of the times when I paved the way for Serena, the thing I can be most proud of is this time. When Serena paved the way for me.