During the early Spanish regime, Barangay Tabunan was just a simple community of settlers and is surrounded by a river. The place was inhabited by the families living in huts made of cogon grasses and bamboo slats. The families learned to grow rice, corn, camote, gabi and bananas. They hunted wild animals or went fishing for their viands. During that time, the land were uncultivated and full of tigbaos and cogon grasses, making it a haven for flocks of wild birds that attracted the hunters from other places. They called the place, Tabunan taken from the named of birds tabon which were then very abundant.
Presently, there are 5 rice mills in the barangay two rice mills are kiskisan rice mill and the other three big rice mills. These agri- industrial businesses prove that Barangay Tabunan is ideal for rice farming and other agricultural livelihood.
Also, it is the site of the OISCA Training Center which is famous for its Sericulture Project, and other livelihood activities offered to the community and The Quite Place Farm Resort.