According to StarTrek.com, the colony was named after either a planet or star named Arawath. The website, additionally, stated the pronunciation for Arawath was "AIR-uh-wath"; however, according to the script pronunciation guide for the episode, Arawath was pronounced as "AIR-a-wath".
According to Star Trek: Star Charts (p. 46) and Stellar Cartography: The Starfleet Reference Library ("Stellar Cartography", pp. 18-19; "Federation Historical Highlights, 2161-2385"), there was a star system named Arawath, in which this colony might possibly have been located. The primary was a M-class star. According to a map of the Cardassian Union – prepared by an anonymous astrography clerk, from the Cardassian Central Archives, in 2364 – Arawath was identified as a Cardassian system.