Tagum City is a vital economic crossroad not only for the province, but for the entire Davao Region as well. It serves as the primary link from Davao City to the northern city of Butuan (in Agusan del Norte), to Mati (in Davao Oriental) and the Surigao provinces.
It borders the Municipalities of Asuncion, New Corella, and Mawab on the north, Maco on the east, and Dujali on the west. Carmen lies on its southwestern borders, while it faces the Davao Gulf directly to the south.
The rapid extension of its economic breadth in the province is primarily due to its strategic location. Blessed with developed public infrastructure, the city manages to infiltrate the export industry with goods such as wood chips, veneer plywood, and wood lumber; however, fresh bananas remain as the chief export product of banana plantations in the city.
Origin of Tagum
There is no official record on the meaning Tagum, but a legend explains how the name Magugpo came about. At the beginning, Magugpo was nothing but a vast wilderness, inhabited by the Mansakas, Manguangans, Mandayas and the Kalagans in the coastal barangays. The name Magugpo was derived from the native word mago, a name of certain tree, and the ugpo means very high. According to the story, the natives were occupying a river basin inside the thickly covered forest where they could not even see the sun. The creek where the natives dwelt still exists, but the once abundant fresh water is now dead, unfortunately due to pollution.