On the northern part of Iloilo lies the Municipality of Ajuy. It is 87 kilometers away from Iloilo City. It extends from Piliwan, its southernmost sitio, to Serruco River on the north. Ajuy Bay bounds its jurisdiction in the south, in the north by the town of Sara and in the west by the town of Barotac Viejo.
The present municipality of Ajuy started from a small settlement established by the early Malayan freedom-seekers on the north side of the Gubaton River near the present site of Barangay Lanjagan. It was originally called “Asui” by the natives. How the name “Ajuy” was later adopted could not exactly ascertained because of the many versions related about it. The most popular story, however which was latter accepted as credible is the following.
On the Old Spanish times, a Spaniard who was assigned to list the coastal villages of this portion of Iloilo, came to his place. He met a native who was gathering fuel. Talking in Spanish, which as accompanied by signs to make himself understood, the stranger asked for the name of the settlement. The native who could not understand Spanish thinking that the Spaniard was asking what he was gathering answered “kahoy”. The Spaniard did not distinctly hear the word but instead noted down the word “Ajoy” which was later changed to Ajuy, the present official name of the town.
After several years from its founding, the settlement prospered and the population increased. The source of livelihood became varied. Many people engaged in trade with the neighboring islands and towns. They found much difficulty in transporting their goods to those places from Asui so they looked for a more convenient place. Thus, the present site of the Poblacion was chosen because of its ideal location