Its former name used to be Panangatan, which comes from the root word sang-at, meaning “to put up on an elevated place”. This referred to the practice of fishermen from Dimiao and Lila who would put up (sang-at) their boats on the banks of the Panangatan River when taking shelter during the southwest monsoons. Here nipa palms grew along the river, preventing the boats from being washed away by the waves.

Panangatan remained part of Dimiao until 1867. That year a Spanish priest was assigned to the place and it became a separate municipality. The priest gave it a new name, naming after his birthplace in Spain. In 1879 Valencia had a population of 7,009.