Sauda is a female name of Arabic origin, meaning "Black; Love." The municipality of Sauda in Norway, after which the name is derived, is situated in the mountain valleys surrounding the Saudafjorden. The name Sauda seems to come from the word "sauðr," meaning "sheep," or the singular past indicative of the verb "sjóða," meaning "to seethe" or "to boil," possibly referring to a spring of water. The coat of arms of Sauda municipality symbolically represents a river as a means for hydroelectricity, reflecting the historical power generation by watermills and the present use for melting metal ore in smelters. The city has a notable history in the mining industry and industrial development. Sauda also offers various attractions and has sister city agreements with San Juan del Sur, Nicaragua.