Southwest of Clarin town is the Municipality of Sagbayan which used to be a barrio made up of portions of Clarin, Inabanga, Carmen and Balilihan. By an Executive Order issued by the late Pres. Elpidio Quirino on Feb. 9, 1949 it was made into a municipality and was then first called Borja in honor of Salustiano Borja the first elected civil governor of the Province of Bohol. Later the name was changed to its original name Sagbayan. As the story goes people used to hang (sagbay) hides of deers on trees to dry after hunting expeditions. So the place came to be known as Sagbayan, meaning a place for hanging. Sagbayan later became the center of trade of people from the interior and coastal towns. Here people bartered fish and other sea foods for rice and rootcrops.

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