Sabana Iglesia's founding date is unclear, however, for long it was a rural section of the municipality of Santiago that was eventually converted into a municipal district in November 1987. In February 2007 this municipal district was elevated to a municipality that includes the rural sections of Sabana Iglesia, Los Ranchos de Babosico and La Zanja.[1] It is the most recent of all the municipalities of the province. Much of the town's earliest development is attributed to Generosa Ferreira, who established Sabana Iglesia's first church, school, library and clinic which are still in operation today.[2]