The name Chicago is derived from the local American Indian word chicagoua for the native garlic plant (not onion) Allium tricoccum. This garlic (in French: ail sauvage) grew in abundance on the south end of Lake Michigan on the wooded banks of the extensive river system which bore the same name, chicagoua. Father Gravier, a thorough student of the local Miami Indian tribe language, introduced the spelling chicagoua, or chicagou, in the 1690`s, attempting to express the inflection which the American Indians gave to the last syllable of the word.

English accounts tracing the name to a "wild onion" date from after 1800, when different groups of American Indians, mainly Potawatomi, had displaced the original Miami. In the Potawatomi language, chicago meant both the native garlic and the wild onion.

More Info: www.earlychicago.com