Its name is from a modified Ojibwa term meaning "southern"; it was the southern boundary of the Ojibwa nation. A Menominee chief named "Sawanoh" led a band that lived in the area. Many citizens of Shawano believe the lake, county, and city (Town of Shawanaw founded 1853 and changed to Shawano in 1856), were named after Chief Sawanoh. A historical marker placed in 1958 near the lake along Highway 22 states the lake was named as the southern boundary of Chippewa (Ojibwe) territory.