In 1914, Cabatuan was incorporated with the Municipality of Cauayan. Many leaders emerged from the Cabatuan settlers and seeing that they are a political threat to the Cauayan leadership, the Municipal Council of Cauayan in 1948 agreed and endorsed the segregation of Cabatuan from the mother town. Through the initiative of the delegation formed by leaders who hailed from Barrio Cabatuan, Executive Order 293 creating the Municipality of Cabatuan was finally signed by President Elpidio R. Quirino in Malacañang on November 5, 1949. On November 30, 1949, the set of municipal officials appointed by President Quirino took their oath of office signaling the independence of Cabatuan from its mother town.