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The agave plant. Tequila is made from the agave, pronounced 'Uh-Gah-Vee'. A native plant to Mexico, its name originates from a Greek word meaning 'noble' or 'admirable'. In Mexico the plant is also sometimes referred to as 'Maguey' (pronounced 'mag-gay').
The word tequila probably comes from the Nahuatl (Aztec) language and translates to the place where plants are harvested, or possibly the place where a lot of work is done, according to Jose Maria Muria in his book, A Drink Named Tequila..