Like most other towns, the history of La Paz is recalled somewhat vaguely because it was dominated largely by legends and folklores, tainted with concommitant tragedy and mystery. Early chronicles state that there was once an old pueblo called Cama Juan that was situated along the banks of Chico River bordering the Province of Tarlac, and Nueva Ecija.
Due to the overflowing of the Chico River, the whole pueblo was flooded. Cama Juan was totally devastated; its dwellings were destroyed; and scores of human lives were lost. Those who survived the flood evacuated and searched for a better place. They resettled on higher grounds not far from Cama Juan. The old site (Cama Juan) is up to this time being referred to as Bayang Iniwan or abandoned town.
Amidst the verdant field of grass and shrubs, the flood survivors began a new life. They called their newfound place, matayumtayum due perhaps, to the presence of abundant indigo vines called tayum (Marsdenia tinctoria R. Brown). The place flourished again through the constant hard work and industry of the people. Hence, the new settlement prospered in time and peace and tranquility reigned among the people. Under the paternal guidance of the older folks, the settlers maintained their seat of government in the said place.
Nearing the tides of the 19th century, General Francisco Soliman Macabulos, who became one of the foremost leaders of the Philippine Revolution, had conceived the idea of selecting the central site of the town at the where it stands at present.
For a long period, La Paz existed in name only for actually and politically; it was a barrio of Tarlac town up to the year 1892. During the same year, it was separated from the town of Tarlac and was created as an independent town. It was re-christenedLa Paz, in honor of the Patron Saint, Nuestra Senora de la Paz y Buen Viaje, with Don Martin Aquino as the first gobernadorcillo.
Later on, due to the heroic exploits of the town’s revolutionary forces, La Paz was made as the first seat of the Local Government of the Province of Tarlac with General Franciosco S. Macabulos as its first Provincial Governor.
A serene town, La Paz will soon become the next corridor of economic growth and boom. Closely situated between the progressive towns and cities of Tarlac and Nueva Ecija, La Paz intersects itself to the economic growth centers of the Subic-Clark-Tarlac- Expressway (SCTEx). Soon, La Paz boom will definitely be unabated.