There are two popular stories about how the city of Soddy got its name. The first is that the word "Soddy" is an anglicization of "Tsati", a shorter form of the Cherokee word ᎠᏂ ᎫᏌᏘ Ᏹ ("Ani-Kusati-yi"), referring to the Muskogean Koasati people who lived there in the 18th century prior to Cherokee migration to the area after 1776. The second theory is that Soddy was named for William Sodder, who ran a trading post in the city. Others claim that Soddy's name is a reference to Soddy Creek, which is believed to have originated from the Cherokee word "Sauta", which is derived from "Echota". Soddy was a very small town until the Soddy Coal Company began mining in 1867.