According to the chronicler John Stow, it is named after the "puddings" (a medieval word for entrails and organs) which would fall from the carts coming down the lane from the butchers in Eastcheap as they headed for the waste barges on the River Thames.
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The refugees at first set up a manufactory of French hoods in Abchurch Lane, London, but afterwards removed to Pudding Lane, where they traded in silk and linen.