[3] The Spaniards named the pueblo (the equivalent of a municipality in present-day terms) San Esteban (formerly known as Cabagbagototan) because they have received reports of a vagabond named Iban having been stoned to death and beheaded by hostile natives in the place called "Naglawlawayan," which is an early place of worship by the natives, and currently the site of the municipal cemetery."Iban" is the Ilocano equivalent of "Stephen," hence the pueblo being named San Esteban.San Esteban was founded by Augustinian friars in 1625, but was always attached to Nueva Coveta (present-day Burgos) and to the municipality of Santiago until 1911.It is bordered by the municipality of Santa Maria to the north, Burgos to the east and Santiago to the south.Poverty incidence of San Esteban Source: Philippine Statistics Authority[11][12][13][14][15][16][17][18] San Estaban, belonging to the second congressional district of the province of Ilocos Sur, is governed by a mayor designated as its local chief executive and by a municipal council as its legislative body in accordance with the Local Government Code.