Online Etymology Dictionary

policy (1)

“way of management, government, administration,” late 14c., from O.Fr. policie (14c.) “civil administration,” from L. politia “the state,” from Gk. politeia “state, administration, government, citizenship,” from polites “citizen,” from polis “city, state,” from PIE *p(o)lH- “enclosed space, often on high ground” (cf. Skt. pur, puram “city, citadel,” Lith. pilis “fortress”). Meaning “plan of action, way of management” first recorded c.1406.

via Online Etymology Dictionary.

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