By the late 1700s, the fishermen of Aromahan has expanded towards a hill east of Dagat-Dagatan. This naturally stony hill was called “Kaloogan”, meaning “interior territory”, which evolved from the old Tagalog word “loog” (synonymous with “loob” or “inside”). The "g" sound could have shifted to the “k” sound in Tagalog phonetics (e.g. baksak > bagsak) leading to the present name of the city. With Aromahan relegated to the periphery, this hilltop area was also settled by oppressed people from Tondo, becoming the new center of the community by 1802. To the east was a vast stretch of cogon-covered land. Eventually called “Kalaanan”, meaning flat grassland in old Tagalog, this area is now generally known as Grace Park.