San Dionisio is known as the Clay Town.
In 1877, the Spaniards, stumbled around allay taking village called Lakdayan (from lakbay-to cross) because people used to pass this place from the mainland to a nearby isle by wading at the sea during morning.
The village leader was Dionesio who cleared the place for settlement. The Spaniards, to honor the leader named the place San Dionisio. They made it a name of Concepcion. When Sara became pueblo, San Dionesio went with it. Later, it also became a pueblo. During the Philippines Revolution, the revolucionarios led by Gen. Perfecto Labrador attached the town killing two guradia civil. The Spaniards imprisoned its last capitan, Larenzo Arcilla for supporting the rebels.
When the Americans arrived, they installed Eugenio Juaneza as president. However, Sand Dionesio again became a barrio of Sara.
In 1921, it became a town with Delfin Espino as its president.
San Dionesio is noted for its good quality clay used for ceramics. Scores of pits and quarries can be spotted scattered around the town.