I read this on wikipedia which seems to be a more apt etymology:

Slang for anus Originally derived from the Pama-Nyungan languages (the family of Indigenous Australian languages), and thought to refer to the anus of an animal, particularly the kangaroo.


Totally, totally wrong -- and it's the first time I've come to gainsay something on the internet ! This comes from the slang phrase, "the Great Wazoo", a put-down to talk about an absent person who thinks he's important, and is an extreme respelling of the French word for bird, oiseau !

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