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Thousands of years before the start of the Avatar series, there were two lovers who lived on opposite sides of warring people. The two of them attempted to speak to each other, and eventually, by watching the course of the badgermoles, learned to earthbend and forged elaborate tunnels through the mountain that divided their people. The two of them would then find each other in the caves, and they were finally able to be together.
One day, though, the man did not com through the tunnels to find his lover. To the girl’s horror, she learned that he had been killed in a battle between their people. In a fit of rage, the girl unleashed a deadly display of earthbending upon those around her. The two sides prepared to die, but they were not killed. Instead, the girl forced them to make amends, and then, in an amazing display, used earthbending to create a city for which the two people could live together. This city was then named after the two lovers, Oma for the girl, and Shu, for the man. Thus is how the city of Omashu came to be.