Place names represent people and their living environment. They often reflect the environmental features or historical development of a place. Shui-shang Hsiang, a town located directly south of Chiayi City, had been developed by Han people in the Dutch and Cheng Cheng-kung periods and was chosen as the subject of this study. Through historical and geographical analyses, I intend to establish the relationship between the change of place names and the activities of the dwellers. The following purposes were pursued in this article: 1)to understand the environmental basis and features of human development, 2)to understand the background and changes of place names, 3)to explore the relationship between geographical distribution of the villagers and their ethnicities, 4)to understand the processes in which regional features were formed. The findings of this study are as follows: 1)few place names reflected the physical landscape of the plain area, but many place names in the hilly area did; 2)place names often reflected the agricultural landscape in the plain area, and geographical distribution of the dwellers was related to their ethnic origin, though, for climate’s sake, any dwellers turned to plant sugar canes and other crops on upland during dry seasons, and many built poh to produce sugar. As a result, many local names were coined with poh. Due to the landform and soil quality, many cemeteries and military camps were built in the hilly area. 3)in the plain area the agglomeration of houses was greater, and the size of villages was larger than in the hilly area. Older villages were often named in relation to the physical features of the landscape or to historical development and environmental changes. More recent villages were often named by their relative geographical positions.