Situated at the northeastern tip of the province bordering its eastern shore is the Pacific Ocean and its northwestern shoreline touching the China Sea. Formerly barrio Palawig of Gonzaga, the town was created by an Executive Order No. 289 of then President Elpidio Quirino, dated October 21, 1949. The town was not named after any saint but the word "ANA" came from the first letter of the family names of then three provincial officials, namely: the late Governor Nicasio Arranz, for the first letter "A", the late Federico Navarro, for letter "N" and Roberto Avena for the last letter "A", both members of the provincial board.

The first inhabitants were the Negritos and "hatcheros" (woodcutters) under Don Julian Astigarraga of Aparri. Then, some fishermen from Minanga, a barrio of Gonzaga came and resided in Palawig. In 1891 Felipe Aragpao with some settlers organized a "gimong" (society) called "Inanama." The purpose of the organization was to acquire and occupy lands around the place. That same year, Briccio Campañano of Lapog, Ilocos Sur, together with some others for Ilocos came to Palawig to apply for homesteads in the sitio of Marede. These settlers organized another "gimong" called "Dagupan."

In 1935, the gimongs "Inanama and Dagupan" fused into one called "Da Inanama," headed by Navarro, they began to work for the separation of Palawig as a municipality independent from Gonzaga. Their application was held in obeyance because their population did not meet the needed number required by law. The move was suspended in 1941 and unluckily, the war broke out and the move was not carried out. It was in 1949 that Palawig and its barrios were separated from Gonzaga.

Some of its agricultural and aquatic products are rice, corn, peanut, fish, lumber, shells, etc. Among its natural resources are limestone deposits at Bawac Mountain, coal at Carbon Mountain at Sta. Clara and guano deposit at Kapannikian Cave.

Scenic spots/historical landmarks are Cape Engaño Lighthouse Verde point, white beaches and waterfalls.