Legend has been told that at the very beginning, ten families settled in a plain untouched forest. Sensing the fertility of the soil, the pioneering settlers tilled the land and planted corn and other variety of crops. The settlers had witnessed the growing corn plant that bore vigorously bunchy burly crown (banay) and fruits which eventually led to a bountiful harvest. The group then decided to name the place as Banay (which means family ) with the bunchy burly corn crowns (banay), thus Banaybanay. The place, which was then a forest, became a heaven-down dwelling for the pioneering settlers and for the present inhabitants who ventured and settled into this developing town.
In the year 1966, Congressman Lorenzo Sarmiento of Davao passed a bill in Congress creating Banaybanay into a Municipality. He proposed the separation of Banaybanay from the Municipality of Lupon. Unfortunately, the bill was not approved by the law making body. Congressman Constancio B. Maglana revived the bill in 1968, this time the bill finally passed both the legislative chambers and became R.A. 5747 on June 21, 1969. This brought about the existence of the municipality we now call Banaybanay.
In the November 1970 local election, three candidates vied for the mayoralty seat. Mayor Ricardo A. Villanueva, a dedicated government servant, won in the elections. He held the post up to June 30, 1992. He was replaced by another more dedicated and honest public servant in the person of Atty. Pedro T. Mejos.
Mayor Mejos served for three consecutive terms from 1992-2001. It was during his administration in 1992 when the Araw ng Banaybanay was first celebrated every 21st of June to commemorate the creation of the place into a municipality.
When Mayor Eva T. Geollegue won in the 2001 elections, she introduced the Banayan Festival every 3rd week of October. The festival is a 5-day celebration that showcased the municipality’s local agriculture products, culture and hospitality. This annual festival had been accredited by the Department of Tourism as one of the festival attractions in Southern Mindanao but when Mayor Mejos won again in the 2004 elections, he revived the Araw ng Banaybanay in lieu of the Banayan Festival
Population by Ethnicity
NSO records show that Cebuano is the major ethnic group in Banaybanay with a total percentage share of 52.55% followed by the Boholano with 9.25%; the Ilonggo ranks third with 9.06%; the Binukid/Bukidnon follows with 8.68%; the Davaweño, fifth with 6.6% and the Kalagan with 4.46%. Other groups are the Ilocano, Mandaya, Manobo, Surigaonon and others. However, the prevailing dialect is Cebuano.