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Kokomo was named after a Miami Indian referred to as a chief, but later found to be local legend Ma-Ko-Ko-Mo, which is sometimes spelled as "Koh-Koh-Mah" or "Kokomoko". His name translates to Black Walnut. There was a trading post for commerce between Native Americans and European-Americans here in the early 19th century.[5] David Foster founded the first trading post in Howard County. In 1844, Foster donated 40 acres (160,000 m2) of his land to create a county seat in Kokomo, which was a log courthouse, for use in the community. It was incorporated as a city in 1865.

Kokomo is officially known as the "City of Firsts."

Natural gas miners and their drill, near Kokomo, Indiana during the Indiana Gas Boom, c. 1885

On October 6, 1886, natural gas was discovered in Kokomo, leading to a "boom" in business. This discovery was directly responsible for Elwood Haynes' move to Kokomo, as he was a superintendent with a gas company with interests in Kokomo and Howard County. The Diamond Plate Glass Company began in Kokomo in 1887, lured by the cheap and plentiful natural gas. This company later became part of Pittsburgh Plate Glass, or PPG.  The Kokomo Opalescent Glass Works started making stained glass in Kokomo in 1888 and has been in continuous operation ever since.