A former barrio of the municipal district of Labangan in the old province of Zamboanga, Pagadian was organized into a regular municipality on [[March 23]], [[1937]], by virtue of Executive Order No. 77.
Pagadian was converted into chartered city on [[June 21]], [[1969]] by virtue of Republic Act No. 5478, otherwise known as the Charter of the City of Pagadian. Benjamin F. Arao was the first mayor of the city. In 1990, during the administration of President Corazon C. Aquino, the regional center of Region IX was proposed for transfer ot Pagadian, yet this proposal cannot be pushed through. However, in 2004, President Gloria Arroyo ordered all offices to be transferred to Pagadian with the exception of regional branches of Department of Tourism, Department of Labor and Employment and Department of Trade and Industry, which will be retained in Zamboanga.
Pagadian city may be aimed to become one of the most important hubs in the south following the controversial regional transfer from [[Zamboanga City]]. Many people in Zamboanga City felt that the timing of the move was an attempt to punish Zamboanga City for not supporting the presidential campaign of [[Gloria Macapagal-Arroyo]]. Others questioned the move because Zamboanga City has a much larger population and has direct air links with [[Davao]], [[Cebu City|Cebu]], [[Manila]], and [[Malaysia]]. Zamboanga City is the commercial and transportation hub of Western [[Mindanao]]. Furthermore, analysts see the P2 billion pricetag of the move to be prohibitive in an era of belt tightening. Another sources stated that the transfer of the regional center to Pagadian would make Zamboanga the center of business and trade. Yet in early 2006, the regional transfer to Pagadian was reportedly blocked by the city's congressional body for its reasons: Zamboanga will be divided into two congressional districts effective May 2007, and the population of Zamboanga is about to reach 1,000,000 residents from Limpapa in the West Coast, to Licomo in the east coast.
