[3] Later on, it was renamed La Paz, meaning "peace" in Spanish, which was derived from its patron saint, Nuestra Señora de la Paz y Buen Viaje (Our Lady of Peace and Good Voyage).

On July 16, 1937, La Paz was incorporated as a district of Iloilo City, alongside the towns of Arevalo, Mandurriao, and Molo.

In 2008, the sub-district of Lapuz in La Paz gained independence after a resolution was passed by the city council.

It is bordered by Jaro to the north, Mandurriao to the west, Molo to the southwest, the City Proper to the south, and Lapuz to the southeast.

The district is traversed by the Tigum River and faces Buenavista on Guimaras Island across the Iloilo Strait to the east.