"Founded in 1860 by Teniente Francisco Rodriguez and Basilio Cordova in the mouth of the river known today as Bulanon River, this place was called Arguelles. Later, by the order of the Spanish Governor, the town proper was transferred to the Old Sagay site known as Pueblo de Magallanes.
In 1906, during the administration of the second President Quintin Katalbas, the name of the town was officially changed to Sagay. The name was taken from the semi-spherical shell called “sigay.”
After World War II, the seat of government was transferred to the present site, Dalusan, because of its accessibility to land transportation.
Continue: http://www.sagay-city.com.ph/about.htm

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