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The Bhutanese contend that the name derives from their language in which it translates to "the stronghold of the King's Minister" ("Kalim": King's Minister, "Pong": stronghold). Others claim the name of this town comes from the word "Kalipong", the name in local dialect for "Kaulim", a fibrous plant found in abundance in this region. Still others point out the word "Kalibong" meaning the black spar as the origin of the town's name.

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