 The town shares its name with the Wangdue Phodrang Dzong built in 1638 that dominates the district.The name is said to have been given by Ngawang Namgyal, the 1st Zhabdrung Rinpoche, who was searching for the best location for a dzong to prevent incursions from the south.At the chosen spot, the Zhabdrung encountered a boy named Wangdi playing beside the river and hence named the dzong "Wangdi's Palace".