Valencia was formerly part of Dimiao. Its former name is said to be “Panangatan”, which is derived from the word ‘‘sang – at’’, meaning to put on an elevated place.

It is said that many years ago, on windy days, fishermen from the town’s Dimiao and Lila used to seek shelter at the mouth of Panangatan River when southeast monsoon was very strong. Hence they would put up ( Sang – at) their boats on riverbanks  where nipa palms grew in order to prevent them from being washed away by the waves.

In 1867, it was separated when a Spanish priest was assigned to the municipality and on the 27th day of October 1869 it was established as a town with Fr. Francisco Cornago as the priest and Ignacio Daloperit as the first Kapitan.

Valencia got its present name by coincidence. The Parish Priest during one of his pastoral visits in the upper barrios was visibly touched of the topography and panorama of the place, which according to him was just like his native city of Valencia, Spain.

Upon returning down, he gathered the important personages at that time and proposed that the old name of the place “ Panangatan” be changed to Valencia.

His proposal was readily accepted and since then the present name Valencia is the official name of the Municipality.