In the year 1966, Congressman Lorenzo Sarmiento of Davao passed a bill in Congress creating Banaybanay into a Municipality. He proposed the separation of Banaybanay from the Municipality of Lupon. Unfortunately, the bill failed the approval of the law making body. Congressman Constancio B. Maglana revived the bill in 1668. This time the bill finally passed both the legislative chambers and became R.A. 5747 on June 21, 1969. This brought about the existence of the municipality we now call Banaybanay.
The Municipality of Banaybanay therefore, is considered the youngest in the family of municipalities in this province of Davao Oriental since it was only formally created by virtue of the earlier named Republic Act on the year also mentioned.
Since its formal operation in 1972 after the first election on the local level, the first HLURB Assisted Ten Year Municipal CDP was for the period covering the years 1995-2005, packaged and finally approved by the Sangguniang Panlalawigan on December 2000.
Through the effectived stewardship of our elected leaders, the municipality had rosed from its class level of 4th to the present 3rd and is now very famous for the consumers favorite Banaybanay Seven Tonner Rice.
As the entry point in the province of Davao Oriental, we could easily be indentified as agricultural and rice producer as evidenced by our sprawling rice field upon entry after barangay Piso, which is also one of the oldest barangays on Banaybanay.
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