Baliuag was founded on 1732 by Augustinian friars and was incorporated by the Spanish Governor-General on 1733.
Through the years of Spanish domination, Baliuag was predominantly agricultural. People had to depend on rice farming for main source of livelihood. Orchards and tumanas yielded fruits and vegetables, which were sold in the public market. Commerce and industry also played important contributions to the economy of the people. Buntal hat weaving in Baliuag together with silk weaving popularly known in the world as Thai silk; the manufacturer of cigar cases, pina fibers, petates (mats) and Sillas de Bejucos (cane chairs) all of fine quality became known in many parts of the world. The local market also grew. During the early part of the 19th century Baliuag was already considered one of the most progressive and richest town of Bulacan. The growth of the public market has significantly changed the mode of economy of the town.
Baliuag is the major commerce, transportation, entertainment and educational center of Northern Bulacan.
Baliuag at present has five parishes :
* St. Augustine Parish
* Our Lady of the Most Holy Rosary Parish
* Nuestra Señora delas Flores Parish
* Our Lady of Mt. Carmel Parish
* Sagrada Familia Parish