On June 17, 1957, some of the barrios of the municipality of Bansalan namely Kibao, San Vicente, Kibuaya, Managa Km.

67, Sinawilan, New Visayas, Sacub, Upper Malabang, Tibongbong, Sinaragan, Maliit Digos, Kapok, Tamlangon, Manga, Buas, New Katipunan, Da-Anama, Upper Kauswagan, Kagaulas, Kabasagan, Tuwak, Mal, Latian, Lanturi, Dongan-Pekong, La Union, Kauswagan, and Paitan were grouped and constituted into a new and independent municipality known as Matanao.

In 1920, long before Matanao was formally created into a municipality, Buas had already existed (representing Matanao) as a barangay of Santa Cruz inhabited by tribal minorities, the Blaans (Bilaan) with Datu Edu Gamban as their recognized leader.

Countless batches of migrants from Luzon and Visayas flocked to the place and various cultural influences account for what Matanao is today.

The people of the municipality is a blend of Cebuanos, Ilonggos, Bicolanos, Boholanos, Ilocanos, Zamboanguenos, Tagalogs, Blaans, Calagans and Bagobos, Babel of dialects was experienced by the people in the place, but Cebuano came out to be the dominating language upon assimilation into the majority society of Cebuano-speakers, thus, becoming the mother tongue of the municipality up to this day.

Poverty Incidence of Matanao Source: Philippine Statistics Authority[11][12][13][14][15][16][17][18] Although predominantly a rice-farming municipality, Matanao is a growing area for banana cultivation, with Cavendish and Lakatan banana plantations established in barangays Manga, Dongan-Pekong and Saboy.