No date was known as to the establishment of the municipality of Ragay although it was recorded that the town was then a visita of Lupi on April 15, 1953.
It was believed that Ragay was also a witness to the ravings of the Moros who would make sudden attacks on most parts of Camarines Sur and Albay. This constant scenario in the lives of the residents of Ragay prompt them to transfer the town to Kaburihan (now called Sta. Cruz) which is on the upper part of the Ragay River. Kaburihan was later named Hagay (which means "separate and selected"). An unusual incident paved the way for the old name to be altered into what is now known as "Ragay". An unusual incident took place when a soldier mistakenly heard the word "Hagay" to be "Ragay" upon inquiring with a native lady the name of the place.