Etymology
A calque of a Native American language term, probably Ojibwe ishkodewaaboo (“alcohol”), from ishkodew- (“fire”) + -aaboo (“liquid”, glossed in older works as “water”). A number of other Algonquian, Siouan and Athabaskan languages also refer to whiskey with compounds that mean "fire-water" (on which basis noted Algonquianist Leonard Bloomfield even reconstructed a Proto-Algonquian word for it, *eškwete·wa·po·wi, although this cannot have existed). The motivation of the name is not entirely clear: It may refer to the “burning” feeling of ingesting high-proof alcohol, or to its flammability; alternatively, it may refer to how low-quality spirits also often included ingredients such as pepper, which burned.
Non-alcohol-related senses are simply fire + water.