That works!

Possibly it's an area with religious significance, say a/some temple(s), and originally there were just pilgrimage tents...which brought traders to supply the pilgrims, who brought guards to protect themselves, who eventually formalized a relationship with the priesthood and started building more permanent structures for housing trade and defense, all under the ultimate suzerainty of the priests, who had no desire for it to have another official name (though there's certain to be an unofficial one, to distinguish the town from the temple(s)...a worn-down version of Tentward or Marketward (in-language, of course), perhaps?