On December 25, 1904, the Philippine Commission passed an Act creating a municipality in the most extreme east of Pangasinan. By virtue of the date of formal inauguration, December 25, 1904 and derived from the Spanish verse "El Nuestro Señor Jesucristo de Natividad" (The Nativity of Christ), the municipality was named Natividad. It was once a barrio of San Nicolas, Pangasinan. Because the place was inhabited by immigrants from Pidigan, Abra and who spoke the locally named dialect Bago, the place was called Cabugan until its creation that the name Natividad was formally adopted.