Varde was from olden times protected against sudden attacks from outsiders, partly because of its distance from the shore and partly because of its neighbourship with the built royal castle/fortress/fort/estate (Vardehus).
Vardehus was the administrative center of the district and from this base of power a royal official governed the shire of Varde a sizeable area corresponding to the former Ribe Amt.
From here a stream symbolizing the stream/river of Varde runs through a part of the town square.
The webcam of the library of Varde takes pictures of the square around the clock and here the "stream" is visible.
The suffixes "wath" and "wick" are believed to mean respectively ford and inlet.
The differing versions of the name occur quite naturally, depending on where you are located "on ground" or "on water".
As with other older Danish towns, Varde is located, where the countryside in different ways favors human settlement and other human activity.