At present, Barangay Lipit is one of the most progressive barangays of the municipality. It is located at the southeastern part of Cabugao.
According to an old man of the barangay, it got its name from the native dialect lipit which means a lane or a narrow way. There is a long barangay lane which extends from Sitio Daramuangan.
This lane passes through the center of the barangay. In the early days, this lane was the main road of the people living in the eastern part of Cabugao and San Juan where they traveled from one barangay to another. There were no good roads, and so this lane was very useful to the people. This barangay includes the sitio of Tumedted, Labut and Lubong.