Extending as a peninsula in the Southwestern tip of Cebu, Moalboal is bordered to the west by the Tañon Strait. From the western shoreline, Negros Island can be seen. Moalboal is located 89 kilometres (55 mi) from Cebu City, about 2.5 hours by bus.
Moalboal is nestled between the towns of Alcantara and Badian. From the tulay, an unfinished bridge located in Moalboal's town proper, Badian Island can be clearly seen, as well as the popular tourist attraction, Pescador Island.
According to lore, Moalboal has a spring where many of the locals get their water. Once, a foreigner asked a woman with a cleft what the place was called. The woman thought he was asking her about the spring so she said that it was a bukal-bukal.However, because of her speech impediment, her words came out sounding likeMoalboal and that was how the town got its name.
Another story is one of Laguno, a local warrior who was exiled from his hometown inBohol. He and his family eventually came to the shores of Moalboal and settled there. Laguno had a yam-yam or oracion, a native prayer used to repel his enemies, and he used this to protect his home when moro invaders came. Legend goes that Laguno instructed his men to throw coconut husks into the water, then with the use of yam-yam, Laguno made it appear that the coconut husks were real men. Seeing that there were many warriors ready to defend the settlement, the moro invaders left. Laguno was revered by his people after that and when he died, it was said[who?] that his body was buried near a freshwater spring located, strangely enough, on the beach. His men placed a large tree trunk over his burial ground so as not to disturb him and it is said[who?] that even today, that trunk still exists. Whenever anyone tried to chop the trunk, it would bleed.