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The best-known version is that a fishing village and its nearby beach bore the name "Panamá", which meant "an abundance of fish".
The size of the indigenous population of the isthmus at the time of European colonization is uncertain.
In 1517 Don Gaspar de Espinosa, a Spanish lieutenant, decided to settle a post there.
In 1519 Pedrarias Dávila decided to establish the Empire's Pacific city at the site.
The new settlement replaced Santa María La Antigua del Darién, which had lost its function within the Crown's global plan after the Spanish exploitation of the riches in the Pacific began.
Blending all of the above together, Panamanians believe in general that the word Panama means "abundance of fish, trees and butterflies".
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Panama was inhabited by several indigenous tribes prior to settlement by the Spanish in the 16th century.