Canberra's newest suburbs now have names: Denman Prospect and Molonglo.

The suburbs, to be located in the Molonglo Valley, are named for Lord and Lady Denman and after the Aboriginal word for thunder.

ACT Environment Minister Simon Corbell said the names drew from the importance of the underlining cultural heritage of Canberra.

"Lord and Lady Gertrude Denman held key roles in the birth of Canberra and I believe commemorating their name is a small token of our appreciation of their lasting work," Mr Corbell said.

"The name 'Molonglo', believed to mean, 'the sound of thunder' in local Aboriginal language, was chosen to underline the cultural and heritage significance of the area."

Mr Corbell made the determination following advice from the ACT Place Names Committee, which includes representatives with significant knowledge of Australian history.

Lord Denman served as Governor-General of Australia from 1911-1914, and laid the first Foundation Stone of the Commencement Column on Capital Hill.

Lady Denman is known for standing upon the newly laid foundation stones nearly 100 years ago, pronouncing:

"I name the capital of Australia - Canberra."