The municipality of Loreto is one of the river towns situated southwest of the Province of Agusan del Sur. It is bounded on the north by the municipality of La paz, in the northeast by the municipality of Bunawan, in the southeast by the municipality of Veruela, all of The Province of Agusan del Sur. The Provinces of Bukidnon and Davao del Norte bound its Western and Southern portion. Loreto occupies a land area of 1,462.7 km² comprising 17 regular barangays and 4 special barangays with a total population of 34,549 as of CY 2007.
Loreto is a strategically situated as a junction point to various destination within Agusan del Sur and nearby Provinces. The accessibility of Loreto to Provincial Center, Patin-ay, Prosperidad has three main routes. The Loreto-Sta. Josefa-Trento route of 118.36 kilometers. The Loreto-Lapaz -Talacogon route of 85.53 kilometers and Loreto-Bunawan route of 87.52 kilometers with two hours of Pump boat cruising Agusan river.
It was in the year 1600 (please check this date, Fr. Urios came to Agusan in 1880's) when the Spaniards first came to the upper reaches of Agusan and discover the Manobos. In convincing the manobos to organized themselves and lived in a settlement/community. The settlement was given the name of “LORETO” in remembrance of Fr. Urios beloved town in Spain on March 30, 1965.