[5] One account attributes the name to the bravery of early Ilocano settlers who defended their territory against invaders armed with superior weaponry.

It is said that local inhabitants teased Spanish soldiers who patrolled the area by asking, “Aoan bala?” (“No bullets?”), referring to whether their firearms were loaded.

[5] This settlement was a flourishing emporium for trade between the lowlanders and the highland Igorots, exchanging gold, porcelain, silk (abel), cotton, beeswax, honey, beads, precious minerals, and locally crafted burnáy (stoneware jars) to its neighboring such as the Igorots and Pangasinans even the Chinese and Japanese.

[7] In 1572, Spanish conquistador Juan de Salcedo arrived at Purao and attempted to persuade the natives to pay tribute to Spain.

"[8] Balaoan is one of the oldest municipalities of the old Ilocos province, established by Augustinian friars during the 16th century, a time of Spanish expansion in the region.

Initially an “encomienda” administered by Christoval Guiral, the settlement encompassed several "rancherias" and catechumens, including areas now part of Namacpacan (Luna), Bangar, Santol, and Sudipen.

Historian Adriel Obar Miemban posits that the town’s founding occurred in 1587, based on records from early Spanish friars Julian Martin and Salvador Font.

Balaoan was initially referred to as the ministry of Purao, under the administration of the Augustinians, with San Nicolas de Tolentino as its patron saint.

[6] During this period, Diego Silang, a prominent Ilocano revolutionary—ordered the town’s gobernadorcillo to rally the support of the nearby Igorots in his anti-Spanish campaign.

Colonel Aniceto Angeles, a close aide of General Manuel Tinio, led revolutionary forces in the area, conducting battles against American troops between June 29, 1900, and April 3, 1901.

One notable victory occurred at Sitio Kalungboyan, where Angeles and his men defeated a company of American soldiers without incurring casualties.

Crispulo Patajo’s efforts to subdue the revolutionaries ultimately led to the town’s pacification and the flight of resistance fighters to Ilocos Sur.

[5] In November 28, 1899, American General Young appointed Don Juan Rodriguez as Municipal President of Balaoan, a position he held until April 1901.

[6] Despite the establishment of an American civil government, resistance persisted among the Katipuneros encamped in Balaoan’s mountains, maintaining the town’s legacy of defiance and resilience throughout its history.

The Imperial Japanese started its occupation of the town in December 1941 after securing Vigan and Laoag, Colonel Kanno and General Shizuichi Tanaka's detachments advanced south along Route 3.

The Japanese 14th Army, commanded by Lieutenant General Masaharu Homma, had also landed at Lingayen Gulf, gaining control of key areas in Pangasinan and La Union.

The town’s agricultural outputs demonstrate a strong local economy driven by diverse farming and fishing industries.Poverty incidence of Balaoan Source: Philippine Statistics Authority[18][19][20][21][22][23][24][25] Balaoan celebrates its Parochial Fiesta (Saint Nicholas of Tolentino Parish Church) every September 9 and 10, and the Panagyaman Festival from December 18 to 22.