The municipality was founded on November 11, 1977, when Barangays Gatub and Bagong Kahayag of the Municipality of Kumalarang and Barangays Lakewood, Bolalawan, Sebugay, Bisuangan, Lokoan, Backing, Dagum, Sapang Pinolis, Tubod, Gasa, Tiwales and Matalang of the Municipality of Lapuyan were separated and formed into an independent municipality named after Lake Wood, a large lake on which the poblacion is located.