Although its young distinction as a city, Passi is considered to be one of the oldest Spanish settlements in Iloilo. It was organized as a pueblo in 1766 with Don Martin Saligumba as its first leader. But the place has actually been settled by three Malayan brothers named Dig-on, Tokiab and Umawang long before the arrival of the Spaniards. Their first formal community was located on the site presently occupied by the Roman Catholic Church.

According to popular legend, Spanish conquistadors stumbled on a small hut by the river’s bank where an old woman was fond winnowing pounded rice. One of them asked her, “¿Cómo se llama este lugar?” not knowing the native language of course. Much to the old woman’s surprise and perhaps excitement, she replied without much ado, “Ah, pasi,” which means some of the unhusked rice on her basket. She must have thought that they were eager to know what was in the basket and what she was doing, because she could not understand their language. From that time on, the Spanish begun to call the place Pasi at first until it later evolved into Passi. Such legends about name origins are common throughout towns and cities in the Philippines, the core plot being a Spaniard asking the non-Spanish speaking natives what the name of the place is and the latter responding in what would end up eventually as the name of the place.

It is said that the first Spanish settlement was established in the area in 1766, marking the onset of Spanish colonial rule. In the traditional story, Spanish explorers anchored in Ansig, a place located at the mouth of Lamunan River. The founding of the present poblacion of Passi was attributed to Don Martin Saligumba. His notable title “Don” indicated his leadership and power over the group.

In 1957, the sitio of Agtabo in the barrio of Salngan was converted into a barrio.[4] In the same year the barrio of Santa Rosa was renamed Santo Tomas.[5]

Passi then became progressive and had experience tremendous development over the period. Because of its strategic location, Passi became a center for trade and commerce bringing more investment opportunities to the municipality. Its high income, high population growth, and a big area of land has finally bring into the limelight and recognized as the first component city in the Island of Panay. After a hard-earned endeavor, its conversion as a city was made through the signing of R.A. 8469 on the 30th day of January, 1998 by the Former President of the Philippines, Pres. Fidel V. Ramos.

Its conversion as a city was made through the signing of R.A. 8469 on the 30th day of January, 1998 by the Former President of the Philippines, Pres. Fidel V. Ramos.