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Probably from the dialectal term oulu(“floodwater”),[1] a Sami borrowing, ultimately from Proto-Samic*oalē(“waterway”). Alternatively, the aforementioned Samic term might be borrowed from Finnish, which would rather derive from another Samic term, *võvl(V), in turn from earlier *votl- (compare to the name of the Vodla river in Russia), perhaps a Paleo-European substrate borrowing.[2]
The internal locative cases (inessive, illative and elative) are used with this place name when referring to a location; for example, "in Oulu" is Oulussa.