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Cauayan, officially the City of Cauayan or simply Cauayan City, is a component city in the province of Isabela, Philippines. According to the 2015 census, it has a population of 129,523. A small town is founded in 1852 along the Cagayan River and in 2001, converted to a component city. During the Spanish regime, the city is a part of the Tobacco industry. Cauayan City is nearly the geographic center of the province and bordered by 7 neighboring towns which makes it as an important economic center of the province. In the recent years, there is an increase in economic activities.
Cauayan City is a fast-growing rural industrial center centrally located in the province and in the entire stretch out of Cagayan Valley. It is about 375 kilometers northeast Manila; 34.5 kilometers south of Ilagan, the capital town of Isabela; about 48 kilometers north Santiago City; and roughly 117 kilometers away from Tuguegarao City in Cagayan Province.
Cauayan is a third class city in the province of Isabela. Cauayan City has been selected to host the Proposed Isabela Special Economic Zone and the Regional Agro-Industrial Growth Center. There are over 2,422 commercial establishments that include distributors, wholesalers and retailers.
In Cauayan City, there is a difference in the adequacy of infrastructure facilities in urban and rural areas. Generally, the closer the area is to the main service center of the city, i.e. the Poblacion, the better are the facilities for production and distribution of goods and services. The analysis in this sector is based on the existing infrastructure facilities and those considered in the pipeline for 2002–2006 implementation. No projects are as yet programmed beyond 2006 in higher levels of government.