[3] In 1701,[5] Paoay was established as a municipality by virtue of Royal Decree with Don Martin Guiang, as its first and founding head.

Don Martin Guiang served as Kapitan Bosar from 1701 to 1704.

The town is home to the Paoay Church, a UNESCO World Heritage Site.

In the 2020 census, the population of Paoay was 25,001 people,[3] with a density of 330 inhabitants per square kilometre or 850 inhabitants per square mile.Poverty incidence of Paoay Source: Philippine Statistics Authority[12][13][14][15][16][17][18][19] Paoay, belonging to the second congressional district of the province of Ilocos Norte, is governed by a mayor designated as its local chief executive and by a municipal council as its legislative body in accordance with the Local Government Code.

[21] On the shores of the lake lies a mansion once used by the Marcoses called Malacañang of the North; it is now a museum.