Alicia was the second site of the town of Angadanan, which was initially founded in the mid-18th century as a settlement in present-day Nueva Vizcaya, between the towns of Bagabag and Bayombong. The neighboring Angaranan Creek gave the town its name. The Spanish made the decision to relocate the settlement to Alicia's current location along the Ganano river, a tributary of the Cagayan River, in 1776. In order to improve transportation and protect the town from frequent invasions by the Igorots and Gaddangs, the Spaniards chose to relocate Angadanan six kilometers further east along the Cagayan River in the 19th century.Â
The second site was subsequently known as Angadanan Viejo (Old Angadanan) to distinguish it from its third site called Angadanan Nuevo (New Angadanan), to which the former was a part of until Angadanan Viejo was converted into the separate municipality of Alicia in 1949. Part of the reason for the separation was that Alicia lay alongside the national highway network, which led to a more flourishing economy than its mother settlement.
Both the second and third Angadanans were part of the Cagayan Valley province. The entire Cagayan Valley was one large province which the Spaniards called La Provincia del Valle de Cagayan, but divided into two new provinces in 1839 by the Spanish conquistadors. One retained the old name Cagayan which comprised all towns from Aparri to Tumauini; while a new province of Nueva Vizcaya was created composed of all towns from Ilagan to the Caraballo del Sur.