Reflections on the origin of the name of Pegeia are divided. However, the most prevalent is the one of Nearchos Clerides. According to it, this name is alien and shows that the settlement was built during the Venetian, who called the neighboring port B (a)ia and small cape there, Keratide because it looks like a horn. Baia Cheratidi means Keratide bay and from that it was named that area. So, B (a)ia in Italian means bay and from that meaning the name of Pegeia came.