The early history of San Jose records as a serious uprising. It is believed that it was founded by the early settlers who were natives of Singat, Ilocos Sur. On this settlement was founded the places named Lupa and Malibanca. Lupa as the name implies was a mere place along the bank of a brook which was totally covered with a forest wherein Lupa trees grew in abundance.

Malibanca was named after the brook which was shaped like a huge Banca. It was believed that the thin brook was inhabited by a haunted dreadful crocodile that fed on human beings and other animals that happened to go near it. Fish was also abundant in this book. The settlers were brave and did not fear this man-eating crocodile. They were not discouraged and kept on improving the place. Resides being brave, they were agriculturally minded. They cleared the forest until at last this plain was gradually converted into a flourishing agricultural land. New plants were introduced and home industries were developed. Among the industries were farming, fishing, and weaving. After a long period of growth and prosperity, the early families thought of grouping themselves one place between these two sitios. The two sitios Lupa and Malibanca were regret together and formed into one barrio and given the name “San Jose” in honor of St. Joseph whose graven image the settlers brought with them during their settlement here about. The settlers erected a small chapel where they installed their patron saint. The people past and present kept going to this chapel to venerate their patron saint and to seek earthly blessings from him.

Among the original families who migrated to this barrio were the Agdeppa, Salcedo, Tipay, and Madayog families. As their families increased in number, the barrio became populated.