Aurangabad is named after the most unpopular Mughal king - Aurangzeb. The city was founded in 1610 by Malik Amber and called Fatehpur. In 1653 Aurangzeb named it Aurangabad.
Aurangzeb died in Ahmednagar on February 20, 1707. As per his wish his body was burried at the feet of his guru Sufi Saint Khwaja Shirazi's grave at Khuldabad, a sleepy village about 26 km from Aurangabad, on way to Ellora caves.
Here is a interesting story. Emperor Aurangzeb though he was, ruling over almost three-quarters of Hindustan, Aurangzeb had dictated that his final resting place should be of simple earth, open to the sky. He had also instructed in his will that the expenses for his funeral should be met by selling the cloth caps made by him. The amount came to four-and-a-half rupees! A sum of 305 rupees, earned from the sale of Korans painstakingly copied by the emperor, was distributed to holy-men on the day he died.