History
The city takes its name from the great seafaring hero Balduran. Long ago, Balduran sailed to the fabled Anchorome and returned with great wealth which was used to build the wall around what became Baldur's Gate. He left the city again, presumably to return to Anchorome, but never returned.
At the time, the growing town was controlled by local farmers who mercilessly taxed incoming shipments. This infuriated ship captains, who believed that since the harbor wasn't walled in, its traffic should not be taxed, and they eventually overthrew the farmers. The four eldest captains ruled the city together, and jokingly called themselves "dukes," which stuck.
Read more about this topic: Baldur's Gate (city)
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—John Ashbery (b. 1927)