Old English wesan, wæs, wæron 1st and 3rd person singular of wesan "to remain," from Proto-Germanic *wesanan (source also of Old Saxon wesan, Old Norse vesa, Old Frisian wesa, Middle Dutch wesen, Dutch wezen, Old High German wesen "being, existence," Gothic wisan "to be"), from PIE root *wes- (3) "remain, abide, live, dwell" (cognates Sanskrit vasati "he dwells, stays;" compare vestal). Wesan was a distinct verb in Old English, but it came to supply the past tense of am. This probably began to develop in Proto-Germanic, because it is also the case in Gothic and Old Norse. See be.
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