The name Zihuatanejo stems from the Nahuatl "Cihuatlan", meaning "the place of women". In pre-Columbian times, the Tarascan leader "Calzonzin" settled in the area and constructed the rock barrier on Playa Las Gatas (named for the harmless whiskered sharks found there) to provide a sheltered swimming area and harbor for the women and children, and that barrier continues to protect the beach to this day. With the arrival of the Spanish, the name Cihuatlan was transformed first into The Pier, 1969"Ciguatan" and then into "Ciguatanejo". Zihuatanejo’s current name form has only been in use for the past couple of centuries.

Over the years, Zihuatanejo was a often a stopping point and haven for Spanish fleets, pirates and privateers. It was known largely as a fishing village through the late 1800’s, and in the 1920’s the export of fine woods from the area began to augment the local economy and attract more people to the region.

http://www.zihua-ixtapa.com/zihua/history/