Mahayag used to be sitio of barangay Molave of the municipality of Aurora. Early settlers of the area had endeavored for the creation of another municipality to fast-track development which is possible only by having a distinct political subdivision from the municipality of Molave. The town site for the new municipality was donated by Messrs Zacarias dela Torre and Pedro Alquiz.

Nowadays, Mahayag is politically subdivided into 29 barangays, one of which is Barangay Panagaan. Barangay Panagaan is located in the north eastern part of the town proper. It is bounded by Barangay Malubo and Barangay Guripan on the north, Barangay Bag-ong Dalaguete and Barangay San Vicente on its south, Barangay Delusom on its west, and it is bounded by Barangay Bag-ong Argao on the east which is under the municipality of Molave, Zamboanga del Sur.

Mahayag is a 3rd class municipality in the province of Zamboanga del Sur,Philippines. The town's name is derived from the Cebuano term "Mahayag" (ma=to become + hayag=bright) which means to become bright or sunny. When the Visayan migrants first trickled into the area after WW-II, the place was heavily forested, which, to some looks dark and forbidding. Local historical sources had it that when a large "Dao" tree which stands in the townsite was felt, the place becomes bright, hence the expression "Mahayag".

Municipality of Mahayag