Before the Spanish occupation Cauayan was a wilderness where the inhabitants depends their lives by hunting and fishing for their survival. The Bamboo tree or in native dialect “Kawayan” was growing abundantly in the place, where the name of Cauyan derived from. In 1822, Cauayan was formally established by Don Vicente Decena, native from Cebu who came to the place because according to the story he was fell in love with a lovely lady from Cauyan and later get married and became his wife.During the Spanish regime, a place for the municipal government was sought Guiljungan, Cauayan and Isio were candidates but Isio prevailed as it was more populated, Isio became the center of government although gobernadorcillos were accorded Cauyan and Guijulngan. But not much progress happen during that time because Spanish rulers were reluctant to teach education to the people. Even though schools were being established but only few had the privilege to take schools because there were no roads and more people were required to force labor.

When the American ruled place many things were changed. The tribunal in Isio was transferred to Cauayan. The people were taught modern way of farming and cultivating lands for much better crops, bridges and schools were built that helps a lot in the lives of people. Today, Cauayan is known for its beautiful beaches, limestone and dried fish.Cauayan was considered as a first class municipality in the province of Negros Occidental, Philippines. Located on the southern portion of the province, it is bounded on the east by the Municipality of Ilog; on the south by the Municipality of Candoni; on the west by the progressive mining City of Sipalay and on the north by the Panay Gulf with its bountiful fishing grounds.It is within the latitudes nine (9) degrees 50 seconds to 10 degrees 00 seconds north and longitudes of 122 degrees to 43 seconds east.