According to historical records, the municipality was first settled by Igorots. They made their first huts at the site where the Roman Catholic Convent now stands.

The settlement grew that it was necessary to divided it under district chiefs. The settlement at the western part of the town was called Baraniw, the eastern part was called Vira and at the middle settlement was called Parparia. This settlement greeted the Spaniards when they came.

Bacarra was originally an encomienda which belonged to Captain Castillo and Andres Hermosa. The definitory of the Augustinian established the Ministry of Bacarra on June 26,1591, dedicating it to San Andres Apostol, the patron saint of the municipality.

Bacarra has a legend attached to its name. The legend tells of a native who went out fishing in what is now known as the Bacarra River. Two Spanish coldiers promenading the place asked him the name of the place. The fishermen thought the strangers were asking the name of the big fish he had just caught and shouted "Bacbacarra Senor" the soldiers left with the thought that Bacarra was the name of the place.

Bacarra is 495 kilometers north of Manila and seven kilometer north of Laoag City. Its boundaries were the municipalities of Pasuquin in the north, Vintar in the east, Laoag City in the south and in the west the South China Sea. On the south of the poblacion is the Bacarra River which flows lucidly down to the China Sea.

The municipality has an approximately 7,700 hectares of which 4,454 hectares are agricultural and the next biggest in residential lots and a small portion of hills. This is the home of the Bacarrenos, a people known for their industry, frugality and adventure.

Bacarra has commercial establishments, gain dealers, garlic dealers, drug stores and grocery stores. The supermarket is open to the public that will lead to the furtherance or expansion of commercial activities.