In early 1915, a group of first settlers [Conag, Arabis, Pelayo and Serafin families] sailed from northern Cebu using their paddled banca and settled the place.

The settlers actively cultivated the area into a productive agricultural community, developing the place until eventually called “Halabangbaybay”.

Halabangbaybay means [Long Beach], due to its elongated shoreline and white fine sand.

People in the 1970s to early 1990s were heavily dependent on the water resources in the so-called Kapayawan, which means "deep well".

In 2000, Esperanza was finally connected to the electricity grid supplied by MASELCO which benefited 80% of the households in the area.

In 2006, President Gloria Arroyo defined Esperanza to be the most accessible town in Masbate going to Samar, Leyte and Cebu.

There are 11 barangays which located along the coastal line and nine in farm areas with an estimated of seventy 70% of the population belongs to the fisher folks.

Amihan and Habagat seasons are generally associated respectively with the El Niño and La Niña global weather patterns.

The Habagat season is characterized by hot and humid weather, frequent heavy rainfall, and a prevailing wind from the west.

Esperanza is a predominantly Cebuano speaking municipality, with a majority of its settlers tracing their ancestries from northern Cebu, particularly from Bogo.