The flow of traffic on a long section of road without entrances or exits can be modeled by continuum equations similar to those describing fluid flow. In a certain range of traffic density, steady flow becomes unstable against the growth of a cluster, or ``phantom`` traffic jam, which moves at a slower speed than the otherwise homogeneous flow. We show that near the onset of this instability, traffic flow is described by a perturbed Korteweg--de Vries (KdV) equation. The traffic jam can be identified with a soliton solution of the KdV equation. The perturbation terms select a unique member of the continuous family of KdV solitons. These results may also apply to the dynamics of granular relaxation.