According to lore, Moalboal has a spring where many of the locals get their water. Once, a foreigner asked a woman with a [[cleft]] what the place was called. The woman thought he was asking her about the spring so she said that it was a ''bukal-bukal.'' However, because of her speech impediment, her words came out sounding like ''Moalboal'' and that was how the town got its name.
Another story is one of Laguno, a local warrior who was exiled from his hometown in [[Bohol]]. He and his family eventually came to the shores of Moalboal and settled there. Laguno had a ''yam-yam'' or ''oracion'', a native prayer used to repel his enemies, and he used this to protect his home when ''moro'' invaders came. Legend goes that Laguno instructed his men to throw coconut husks into the water, then with the use of ''yam-yam'', Laguno made it appear that the coconut husks were real men. Seeing that there were many warriors ready to defend the settlement, the ''moro'' invaders left. Laguno was reverred by his people after that and when he died, it was said that his body was buried near a freshwater spring located, strangely enough, on the beach. His men placed a large tree trunk over his burial ground so as not to disturb him and it is said that even today, that trunk still exists. Whenever anyone tried to chop the trunk, it would bleed.
The street fronting the Municipal Hall of Moalboal is called Laguno Street in honor of the warrior. Laguno's burial ground is said to be located underneath the mangroves near the ''tulay.'' The spring still exists today.-->
