The Municipality of Liliw was founded in 1571 by Gat Tayaw. The small, peaceful and picturesque town nestled at the foot of Mt. Banahaw , 17 kilometers away from Santa Cruz , capital of Laguna Province .
According to a story, Gat Tayaw and his men erected a bamboo pole and decided to name the town after the bird that would first alight at the top of the pole. After four (4) days, a crow perched on the pole, however, the bird was considered malevolent. Thus, Gat Tayaw and his men decided to erect another bamboo pole at the south. With constant vigil, a beautiful bird nestled on the pole and sang, "Liw, Liw, Liw". From then, the town named "Liliw".
Throughout the Spanish regime, the name Liliw was used but when the Americans came, it became "Lilio" since they found it easier to pronounce it than Liliw. On June 11, 1965, Resolution No. 38-S-65 was passed by the municipal council which declared "Liliw" as the official name and spelling of the town. This was to avoid the confusion in pronouncing and spelling the name of the town.