The name 'Tumwater' is an amalgam of several words that mean 'tum' and 'water'. Interestingly, the town's name is derived from two separate American communities located at the bottom of the Budd Inlet, one of which is called New Market. This settlement was populated by Native Americans who lived in the region long before Europeans arrived. New Market was a community made up of cedar posts and planks, and had about 24 families.