BARANGAY Daanlungsod was the first site of the town proper of Alcoy during the Spanish regime in the island. It was in 1840 that a small church and a communal house was built for the priest to stay. The former name of the place was Mambaje and was requested by the priest to become a town, so that on July 16, 1867, Mambaje officially became a town headed by a captain who was under the supervision of the parish priest of Boljoon, a southern town next to Alcoy in modern Cebu.
In 1868, about a year after Mambaje became a town, the Spaniards changed the name of the place to Alcoy, a name similar to a town in Spain. Due to succession of leaders, the seat of the town’s government was transferred to a new site, which is now Poblacion, and Mambaje became a barrio called Daanlungsod.
Barangay Daanlungsod, having a small church built long ago, had a belief in Santa Cruz where people believed that God was crucified because of their sins. This started the people of Barangay Daanlungsod to hold a fiesta in honor of Santa Cruz.
The Santa Cruz fiesta was held every September, but the ancient inhabitants believed that the month of May was the best month to celebrate the feast. Now the feast is observed every third of May.
Sometime in 1980, the chapel in Daanlungsod was improved by the people through the efforts of the chapel officers who raised funds for the tiling of the floor. However as years passed, the walls were cracked due to typhoons and the occurrence of a strong earthquake. Ceilings were also defective and needed major repair.