Since time immemorial and as far as the indigenous Subanen can remember, the most prominent landmark of Lake Wood, aside from the slopes of its rugged hills, is the lake. For the Subanen inhabitants, this body of water, which comprise of 729 hectares, as known as Danao (Subanen term of LAKE). Today the land mass around the lake, which also serves as its catchments, comprises what is now the jurisdiction barangay poblacion, noted to be the center of development and the seat of municipality of Lake Wood. Danao and Lake Wood take prominence both in the oral and written history of its people.

           In the Subanen oral traditions, the discovery of the lake is attributed to the two brothers, known to be Gatao de Baloy (people of the mountain) origin. Sometime in the remote past the two were believed to have undertaken a long journey for their search for food. They have travelled to the mountain slopes and the river from the Salug Valley through Pagadian, after few weeks, the have reached the alluvial plains of Lake Wood. Accidentally, through a dog that accompanied them, they have found the lake. Old folks tell that their haunting dog had approached them in their makeshift camp with a lot of fish (Purang) caught on its mouth. They followed the dog and finally found the lake, abundant with endemic fish now named Purang (dried fish).

​