Malilipot traces its history to the expedition of Captain Juan de Salcedo in 1573 and the colonization of Albay Bay, now called Albay, with 120 soldiers and guides. During these period, towns were established. Libon was founded in 1573, Polangui in 1589, Oas in 1587, and Malinao in 1600. Other municipalities were established in succession. A story alleged that the Spanish colonizers reached this new settlement in the month of December. The weather was so cold that the Spaniards exclaimed "muy frio" which the natives interpreted as "Malilipot" meaning very cold.
Another story alleged that when a Spanish ship disembarked on the bay of Malilipot, Spaniards asked a native fishermen for the name of the place. Due to language barrier, the natives thought he was asked what are their conditions, to which they replied "nalilipot kami". The Spaniards then conclude that the place was "Malilipot".
Another legendary name given to the town was "Manlipod" meaning "Protector" attributed to the mountain ranges which had protected the town from the early destructive eruptions of Mayon Volcano. It was said that, had it not been for these mountain ranges, the poblacion would have been buried under the molten lava and ashes emitted by Mt. Mayon. These protective mountains are Toktokan and Bulawan (meaning Gold) situated on the southern part and extends to the western side of the town, and screens it from the ravages of Mayon Volcano. The town is popularly known as Malilipot. Now, the official name of the town is Malilipot (Ma-li-li-pot), accented on the third syllable.
"For lovers of waterfalls in more or less unspoiled nature a day trip from Legaspi to Malilipot can be warmly recommended. From here, on the north-east foothills of Mayon, there is a path leading in the direction of the volcano to the Busay Falls. These falls descend in stages from a height of 250 meters, flowing into seven pools on the way that tempt you to swim in them. If you don't want to jump straight into the first pool, then turn off onto the path on the right just before it. After about a 15-minute this will take you to the second pool."