Bagabag is approximately 20 kilometres (12 mi) away from the capital town of Bayombong and 286 kilometres (178 mi) from Manila. It is located at the northeastern part of Nueva Vizcaya with a total land area of 260 square kilometers or 26,000 hectares. It is bounded in the west by the municipality of Villaverde, in the east by the municipality of Diadi, in the north by the municipality of Lamut, Ifugao, in the southwest by Solano, and in the south by the municipality of Quezon. Bagabag is the gateway to the famous Banaue Rice Terraces.
The town of Bagabag was founded on October 7, 1741, during the Spanish regime by Padre Antonio del Campo, a Spanish friar, at sitio “Nagcumventuan” a place now located between Pogonsino, Bagabag, Nueva Vizcaya and Bangar, Solano, Nueva Vizcaya. The present name of the sitio bears proof to the fact that the Spanish priest constructed a church in the original town site. The first priest was Pe. Luis Sierra who came in 1743, and Pe. Alejandro Vidal, who was the Vicar Provincial, organized it in 1754. Due to the continuous erosion and flood from the Magat River and for its increasing population and growth, Pe. Vidal later transferred the town site to “Nassa” a place that is presently located between Barangays Lantap and Santa Lucia. The latter place is an open and muddy throughout the year. For the third time, Pe. Vidal transferred the town site to its present site where numerous buri palms were then growing. It was from this buri palm plant the name of Bagabag originated, the same being called by the natives as “bagbag”. No account could be given on the date of the year, the present town of Bagabag was founded as the records were destroyed during World War II. In 1945, the combined United States and the Philippine Commonwealth troops entered in Bagabag together with the recognized guerillas by the attack of the Japanese Imperial forces in the Battle of Bagabag continue in World War II.
On January 11, 2008, the Cagayan Bureau of Fisheries and Aquatic Resources (BFAR) stated that tilapia fish production grew and Cagayan Valley is now the Philippines' tilapia capital. Production supply grew 37.25% since 2003, with 14,000 metric tons (MT) in 2007. The recent aquaculture congress found that the growth of tilapia production was due to government interventions: provision of fast-growing species, accreditation of private hatcheries to ensure supply of quality fingerlings, establishment of demonstration farms, providing free fingerlings to newly constructed fishponds, and the dissemination of tilapia to Nueva Vizcaya (in Diadi town). Former cycling champion Lupo Alava is a multi-awarded tilapia raiser in Bagabag. Chairman Thompson Lantion of the Land Transportation Franchising and Regulatory Board, a retired two-star police general, has fishponds in La Torre, Bayombong. Also, Nueva Vizcaya Gov. Luisa Lloren Cuaresma also entered into similar aquaculture endeavors in addition to tilapia production.