Baguio was called "Kafagway" by indigenous peoples. The name "Baguio" originates from the American period and is derived from the Ibaloi word bagiw (moss), which was then Hispanicized as "Baguio". A demonym for natives of the city, "Ibagiw", is also derived from bagiw. It is also the name for the city's annual arts festival.
History
Baguio used to be a vast mountain zone with lush highland forests, teeming with various wildlife such as the indigenous deer, cloud rats, Philippine eagles, Philippine warty pigs, and numerous species of flora. The area was a hunting ground of the indigenous peoples, notably the Ibalois and other Igorot ethnic groups. When the Spanish arrived in the Philippines, the area was never fully subjugated by Spain due to the intensive defense tactics of the indigenous Igorots of the Cordilleras.
Igorot oral history states the Benguet upper class, baknang, was founded between 1565 and the early 1600s, by the marriage of a gold trader, Amkidit, and a Kankanay maiden gold panning in Acupan. Their son, Baruy, discovered a gold deposit in the area, which he developed with hired workers and slaves.
Spanish colonial period
In 1755, the Augustinian Fray Pedro de Vivar established a mission in Tonglo (Tongdo) outside Baguio. Before he was driven out the following year, this rancheria included 220 people, including several baknang families. The Spanish tried to regain the mission in 1759, but were ambushed. This prompted the Governor General Pedro Manuel de Arandía Santisteban to send Don Manuel Arza de Urrutia on a punitive expedition, which resulted in the mission being burned to the ground.
During the period of Spanish rule in 1846, the Spaniards established a comandancia in the nearby town of La Trinidad, and organized Benguet into 31 rancherías, one of which was Kafagway, a wide grassy area where the present Burnham Park is situated. Kafagway was then a minor rancheria consisting of only about 20 houses. Most of the lands in Kafagway were owned by Mateo Cariño, who served as its chieftain. The Spanish presidencia, which was located at Bag-iw at the vicinity of Guisad Valley was later moved to Cariño's house where the current city hall stands. Bag-iw, a local term for "moss" once abundant in the area was spelled by the Spaniards as Baguio, which served as the name of the rancheria.
During the Philippine Revolution in July 1899, Filipino revolutionary forces under Pedro Paterno liberated La Trinidad from the Spaniards and took over the government, proclaiming Benguet as a province of the new Philippine Republic. Baguio was converted into a "town", with Mateo Cariño being the presidente (mayor).