Ms Caudwell said she had met several older women named Isla and they were "gentle, nice people''.
"I tended to like the name a lot more.''
She said she had often seen Isla on online lists of popular baby names.
However, Isla did not make the top 10 girls' names last year in New Zealand.
Olivia took the top place for girls while Jack was the most popular name for boys in 2012, according to the Department of Internal Affairs.
Olivia claimed the top spot for most popular girl's name for the first time after having been a close second in recent years.
Sophie took second place while Ruby, which was the top name in 2011, took fifth place. Emily has made the top three for the first time after being in ninth place in 2011 and 2010.
Jack, which was the most popular boy's name from 2005 to 2009, fell off the top three list in recent years and has made a comeback from 10th placing in 2011 to number one in 2012. Liam and Oliver continue to be a popular choice for boys' names with William in third place for the first time since 2008.
A survey of the birth notices in The Daily Post showed some of the other names given to girls born in Rotorua last year include Riley (also spelt Ryleigh), Maeve, Bailee, Charlotte and Adele while some of the names given to boys include Dante, Knox, Maverick, Axel and Carter.
Meanwhile, a question posed on The Daily Post Facebook page yesterday asking for creative baby names for 2012 attracted a large response with more than 70 people posting some of the names they'd heard parents name their children during 2012.
Names of babies born in Rotorua in 2012
Some of the names posted on The Daily Post Facebook page:
Mystery
Manaia
Axel
Mylene
Harlow
Piata
Glamorous
Diamond
Kymani-Li
Reggae-Leigh
Tarzhae
Zeathen
Khorus-Lee
Haper-Grace
Zephania
Pharell
Cwade (pronounced Suede)
Birth notices in The Daily Post:
Girls
Isla
Riley or Ryleigh
Maeve
Rongomaianiwaniwa
Bailee
Charlotte
Adele
Samantha
Sarah
Layla
Boys
Elijah
Dante
Knox
Maverick
Axel
Carter
Rico
Dakota
Daniel
Andrew