Legends state that an old pueblo called "Cama Juan" was situated along the bank of the Chico River, bordering the province of Tarlac and Nueva Ecija.

[5] Towards the end of the nineteenth century, Francisco Macabulos and Captain Mariano Ignacio selected a more centrally located site for the future town to be known as La Paz.

This existed only as a barrio of the town of Tarlac until 1892, when it was separated from the latter and rechristened in honor of its patron saint Nuestra Senora de La Paz y Buen Viaje.

[5] La Paz was made the first seat of the revolutionary government of the province of Tarlac during the Spanish regime with Gen. Francisco Makabulos as its first provincial governor.

Other tourism attractions in the town include Macabulos ancestral house, Nuestra Seṅora De La Paz Church, and Chico River Grill Station.