Cauayan is the 3rd class city of Isabela province, Philippines. According from the conducted census on 2015, the city has a population of 129, 523 people.

Cauayan came from the word of Kawayan meaning bulo in the Ilocano language, the early settlers of the place. In the tale, early Spaniards reached the place found abundant bamboo trees along creeks that circled the town site of Bulod, Sipat, Bungkol, and Marabulig creeks where few families lived. It was also common to see crocodiles basking under the cluster of bamboo along the creeks in the early morning sun.

Another version of how the place got its named: One day the miraculous image of the Blessed Virgin Mary disappeared. For many weeks, a tireless search was undertaken but it was nowhere to be found. Then one day in October the image was found among the bamboo groves. Not just a single sign of mishandling or scratch was detected on the image.

Cauayan is a fast growing rural industrial center centrally located in the province and in the entire stretch out of Cagayan Valley. Cauayan is nearly the geographic center of the province and bordered by 7 neighboring towns which makes it as an important economic center of the province.
During the Spanish regime, the city was part of the Tobacco industry. Cauayan town was once a part of the province of Cagayan.

Cauyan is a third class city in the province of Isabela. It has been selected to host the proposed Isabela Special Economic Zone and the Regional Agro-Industrial Growth Center. There are over 2,422 commercial establishments that include distributors, wholesaler and retailers. Cauyan city is a surplus producer of rice and corn.