from Wikitravel: http://wikitravel.org/en/Malacca
Malacca (Malay: Melaka) [1] is the capital of the state of Malacca, on the west coast of peninsular Malaysia.
Modern-day Malacca is a vibrant old city that believes its wealth of history. Visiting Malacca is a unique experience; its rich historical background earned it a World Heritage Site designation in July 2008.
History
There are some interesting legends surrounding the foundation and naming of Malacca. According to the 16th century Malay Annals, the city was founded by Parameswara. More likely, he was a Hindu prince and political fugitive from nearby Java. The legend goes that Parameswara was out on a hunt in the region and had stopped to refresh himself near what is now the Malacca River. Standing near a melaka (Indian gooseberry) tree he was surprised to witness one of his hunting dogs so startled by a mouse deer that it fell into the river. Parameswara took this as a propitious sign of the weak overcoming the powerful and decided to build the capital of his new kingdom where he stood, naming it for the tree under which he had been resting. Another account says Malacca is derived from the Arabic word Malakat, meaning market. Malacca had a navigable harbor sheltered by nearby Sumatra across the narrow straits, ample supply of fresh water, enjoyed a prime location relative to the shifting monsoon winds, and had a central location in regional trade patterns, all of which soon made it a prosperous trading town.
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