MacArthur, Leyte, Philippines, was originally a village called Bagacay, named after American general Douglas MacArthur, who arrived at Leyte Beach in the late 19th century. The town was initially named Bagacay after a bamboo species, and later Tarragona, named after its native city in Spain. In 1898, Tarragona became an independent town, but the Spanish government changed hands with the Philippine Republic, returning it to its former status as a barrio.
During World War II, Senator Jose Veloso proclaimed Tarragona as a municipality, with Antonio Matoza as Mayor, Fabian Pantin as Vice-Mayor, Calixta Matoza as Municipal Secretary, Alejandro Nuevas as Municipal Treasurer, and Marciano Lumbre as Chief of Police. The municipality was composed of various barrios. However, when American forces arrived in 1944, the municipality collapsed and returned to being a barrio. In 1947, the people organized the "Barrio Tarragona for Regular Town League." In 1949, Daniel Z. Romualdez sponsored House Bill 141, creating MacArthur, Leyte, with the seat of the municipal government at Tarragona. The President issued Executive Order No. 324, creating the Municipality of MacArthur, Leyte on June 17, 1950.