Located on the vast plain of the Cagayan Valley in the heart of Isabela province, Cauayan City is one of the newest cities in the country. The mighty Cagayan River traverse the eastern part of the city. The city is accessible by land using the Maharlika Highway and by air transportation using its own domestic airport. Neighboring towns are Luna on the north, Reina Mercedes and Benito Soliven on the east, Alicia and Angadanan on the south, and Cabatuan on the west.

Most of the residents are Ilocanos with some Gaddangs and few migrants from other cultural groups such as those from the Cordillera provinces. Majority of the population are Roman Catholics. Others religions are Iglesia Ni Cristo, Aglipayans, Protestants, and Islam. A mosque for the Muslim population was built in the northwestern part of the city not very far from Jaycee farm and Resort. During summer, the city holds the Gawagawayyan Festival as a tribute to its ancestry and to celebrate bountiful harvest.

Although the city proper is urbanized, much of the outer parts are rural or farm lands. Commercial establishments are concentrated in only five thoroughfares namely: Maharlika Highway (National Road), Rizal Avenue, Quezon Street, Governor Dy Avenue, and Don Jose Canciller Street. Except for a softdrinks bottling plant, the city lacks large industries. There are, however, small bakeries, rice mills, furniture, clothing, metalcraft and automotive shops catering to local customers.

It is in this city where the former long time governor of Isabela, Faustino Dy , started his political career. It is also in this city where the current Governor, Grace Padaca, started to make a name as a broadcast journalist.

The city has enormous potential for small to large enterprises. With roads leading to all the towns of the province, it is a good location for a regional or provincial headquarter. As a young city, its real estate industry is just beginning. Medium size commercial centers or subdivisions are the appropriate ventures to put up. There is a need to establish a world-class resort and golf course to attract high-flying investors and the moneyed people of Cagayan Valley. Courageous entreprenuers may explore the posibility of technology-related businesses.

Situated at the center of a vast agricultural area with farmlands in its territory, the following micro and small businesses are suggested:

1. Intensive farming to produce vegetables for the city and nearby towns
2. Commercial poultry and hog raising
3. making glutinous rice powder
4. Meat processing to produce hotdog, longganiza, tocino, ham, etc.
5. Production of vinegar, soy sauce, patis, mayonnaise, catsup, fruit juice, and peanut butter
6. Essential oil and perfumes
7. Herbal supplements, malunggay powder, and squash flour
8. Soap and personal care such as lotion, shampoo, and facial creams

The following medium to large factories are recommended considering the raw materials available and their domestic as well as export market potential:

1. Feed milling and agro-chemicals such as fertilizer
2. Production of corn and cassawa starch
3. Dairy farming and processing
4. Sweet corn Canning
5. Furniture and home decors using modern design techniques
6. Footwear and fashion accessories
7. Textile and clothing like knitted fabrics and artifacts
8. Meat packing and canning
9. Cold storage plant

1. Jaycee Farm and Resort
2. Theo Antonio Resort
3. Our Lady of Pilar Parish Church
4. Tabacalera and La Insular ancient bodegas

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