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Initially, the city was named Starling City. However, following his takeover of Queen Consolidated, Ray Palmer wished to have the city rebranded as "Star City" in an attempt to rejuvenate its populace after the events of the Glades Earthquake and the subsequent invasion of Slade Wilson's army.
After Ray Palmer's apparent death following a further terrorist attack by Ra's al Ghul, the city was rechristened as Star City in his honor.