A happy occasion sparked the naming of Alegria. The town was long known as Tubod after a sparkling spring (tubod in Cebuano) whose cool waters was the favorite of the townspeople and travelers alike. It was here where a group of Spaniards chanced upon its residents enjoying a festivity amidst hilarious merriment. Amused, the Castillians exclaimed : Que alegre! Que alegre! (How gleeful!) From this rustic revelry, the town earned its name.
Alegria was originally a part of the town of Samboan. As vassals of the municipality, the people of Alegria were made to render free labor in the building of the church if Samboan. The people, however, did not object as they viewed it as service to God.