During the olden days, there was an adventurer who explored all corners occupied by the people of Cabugao. He was surprised to see thickly growing trees with sturdy stem, fine leaves and equally fine green and black fruits. He picked the fruits and tasted it good. He continued walking and saw an old man resting on a hut. The adventurer asked, among other things, the name of the place. The old man said that there is no official name of the place yet except it is a distinctive haven of ar-arusip. The adventurer exclaimed and said Oh! How about calling the place Caar-arusipan? The old man was so delighted about the name given by the adventurer for it is appropriate owing to the abundance of ar-arusip trees growing in the place.
The new name spread out so easily among the residents. They later dropped the other letters and made Carusipan for easy pronunciation.
Barangay Carusipan is located on the eastern part of the town proper. It is six kilometers away from the Municipal Hall with a total land area of 230 hectares. It is bounded north by Barangay Aragan, on the south by Barangay Cacadiran, on the east by Nueva Era and on the west by Barangay Arnap. It also has three sitios: Balogsi, Cobucob and Rebba.