In the beginning, La Paz is a barrio or small community of the town of Jaro. It has a span of 110, 700 square meters. The place was originally called Ilawod because it faces Iloilo river on the south while Jaro is called Ilaya because it faces the mountain. Love of freedom and the desire to live peacefully and prosperously compelled the people to separate from Jaro in 1865. The name of the place was changed to La Paz which means peace and their patron saint is Nuestra Señora De La Paz y Buen Viaje or Our Lady of Peace and Good Voyage. When the Jaro Archbishop saw the peaceful, law abiding citizens, he designated the Holy Virgin Mary as the patron of the barrio and call it Nuestra Señora De La Paz y Buen Viaje or Our Lady of Peace.
The church in this district was built in 1869 by the priests Candido Gonzales, Leandro Jambrina, Manuel Camara and Mariano Isar.
The La Paz Catholic Church that is situated at Jereos Street fronting La Paz plaza is one of the unique places which has a significant part in history, culture and spiritual development of the people.