In the middle part of the nineteen forties, Pajo Baguio was declared an independent barangay among its early leaders who could be considered founder, they are the following:
Juan Ibayan, Paulino Tabeli, Marcelo Panti, Manuel Tabo, Juan Tablate, Toribio Vargas, Luis Zafe, and Leon Fernandez most of them were religious leaders.
It could also be probable that the name PAJO was obtained from a TALL GRASS which abounds in the place before called BEGAHO. According to stories again the name PAJO BAGUIO was given by a certain catholic priest Padre OLIVA who usually visited the place them. The reason for giving the name was due to the nature of its terrain which most of its part is hilly.
According to stories which were handed down from mouth to mouth of the elders to the present, PAJO BAGUIO was a former sitio of the earlier established barangay of Pajo San Isidro located at the other side of the river which formerly was considered a dividing line between the two neighboring barangays with all probability during the latest part of eighteen hundred (1800) and the earlier part of nineteen hundred (1900) PAJO BAGUIO was settled by the people from nearby barangays like Antipolo, Palnab, Gogon, San Pablo, San Juan, Concepcion etc. most of them were farmers based on its development which is until the present time.