Vatican City
The name was first used in the Lateran Treaty, signed on 11 February 1929, which established the modern city-state. The name is taken from Vatican Hill, the geographic location of the state. "Vatican" is derived from the name of an Etruscan settlement, "Vatica" or "Vaticum" meaning garden, located in the general area the Romans called "vaticanus ager", "Vatican territory".
Vates
In pagan Rome the vates resided on the Vatican Hill, the Hill of the Vates. The Vatican Hill takes its name from the Latin word Vaticanus, a vaticiniis ferendis, in allusion to the oracles, or Vaticinia, which were anciently delivered on the Vatican Hill. (When the papacy was returned to Rome from Avignon (France) in the 14th Century, the Vatican became the residence of the Pope, and the word Vatican came to refer to the enclave in the middle of Rome that had become the seat of the Roman Catholic Church.)