How did Tarrytown get its name?

In "The Legend of Sleepy Hollow," Washington Irving explains the naming of Tarrytown as such:

This name was given, we are told, in former days, by the good housewives of the adjacent county, from the inveterate propensity of their husbands to linger about the village tavern on market days.

In short, Tarrytown was named for its neighbors' tendency to loiter in its village bar.
Tarrytown is indeed a village located on the eastern banks of the Hudson River in New York. However, Irving's fanciful explanation of the town's name is not accurate. Originally, the area was inhabited by Weckquaesgeeks Indians and settled in 1645 by Dutch farmers, fisherman, and fur trappers. The soil in this area was ideal for farming wheat, as it was filled with loam and provided excellent drainage. As such, locals referred to it as "Wheat Town." "Tarwe" means "wheat" in Dutch, and historians have speculated that the village was called "Terve Town," which became pronounced "Tarry Town" over time.