There are no particular records showing how Danao got its name. But one legend emerged in the 1960s indicating that the name was due to miscommunication between the locals and the Spaniards. The legend shows that a Spanish captain commissioned by the Spanish authorities to establish towns in Cebu chanced upon natives tending to carabaos wallowing in a pond. He asked them for the name of the place, but the natives could not understand the Spaniard. They thought he was asking for the name of the pond, and they answered danawan or pond. Since the Spaniard was not familiar with the local language, he only heard the first two syllables, da-naw. From that point on, the place was called Danao.
Danao City actually offers a number of delicacies local and foreign visitors can try. One of these delicacies is a locally-produced cheese made out of carabao’s milk, the kiseo. While the island does not have sufficient space for cattle grazing, the city does have a tradition of making cheese. Aside from Danao City, the kiseo is also produced in other places in the island of Cebu.