A town in Wisconsin was named by putting together random letters of the alphabet.

This one goes all the way back to 1841. In February of that year, Watertown towns 7 and 8 were set off to organize a new town, the town of Union. Union remained that way until 1846, when it was divided into two MORE towns. 

Town 7, the first of the two, was called Concord. The name was unanimously agreed upon and the matter was settled quickly. Town 8, however, was the focus of a large dispute. It seemed no one could actually agree on a town name. The conflict dragged on for so long that to put a simple end to it, the letters of the alphabet were written on slips of paper and put in a container. 

A woman named Mary Piper drew letters until a name was formed. As a result, Ixonia, Wisconsin was born on January 8, 1846. To this day, it is the only town in the United States named in such a way. 

(Source)