Balaoan, formerly "Puraw" (meaning "white') was originally part of Ilocos Sur. The town's present name originated during the Spanish colonial era. A group of Spanish soldiers were on patrol and went on to rest on a sitio. The villagers were curious about the soldiers because of their unusual descent and fair skin color. They flocked the soldiers touching their guns, too afraid that the guns might explode accidentally, one villager asked the soldier in a local vernacular.. "Aoan bala?" (meaning "No bullets?"). The soldier did not understand what the villager meant, he uttered the last word first, and remembering the last, he said "Bala-aoan".