Calauan's population is expected to rise, as the town is being used as resettlement of informal settlers in Metro Manila through the Bayan ni Juan and the Kapit-Bisig para sa Ilog Pasig project of the ABS-CBN Foundation.Folklore has it that during the construction of the Municipal Church, water seeped into the holes dug for its foundation, giving it a brown, rusty hue, hence the name Calauan (Kalawang).The fertile soil of Calauan attracted the attention of Captain Juan de Salcedo, when he passed through Laguna and Tayabas (now Quezon) on his way to Bicol in 1572.Following in epidemic in 1703, the town was moved to its present site at the fork of three roads—now to the south-west leading to San Pablo, the other southeastward to Santa Cruz, the provincial capital, and the third going North to Manila.de Soriano, granddaughter of the Spaniard, Iñigo., subdivided Hacienda Calauan and sold it to the tenants, part of what remained was converted into a rest house and a swimming pool and it became one of the tourist attractions until 1956.