The history of Barangay Kanluran Kabubuhayan dates back to the early settlers of the area during the Spanish era. Initially, the settlement was called Ibabang Lagulo, as the residents were predominantly from the same lineage, often referring to themselves as one family.

Over time, as the Spanish rule continued, the people sought ways to improve their living conditions. A significant challenge they faced was the lack of a reliable water source, prompting them to dig and search for drinkable water. Eventually, they discovered a natural spring at the foot of the mountain, which they later called "mag-asawang bukal" because of the two nearby water sources that provided them with clean drinking water.

However, the spring was not sufficient to support the growing community, as it produced only a small amount of water. To address this, the residents attempted to deepen their excavation, hoping to increase the water flow, but were met with limited success. Word spread about their struggles, and three Spanish friars known as Escueta traveled to the settlement to investigate the mystical spring. They confirmed its presence and declared that the land surrounding the spring was suitable for kabuhayan (livelihood). Inspired by this, the people adopted the word Kabuhayan as the official name of their community.

Since then, the area has been known as Kabubuhayan, signifying the prosperity and survival of its people. The official documentation of this history was recorded by Punong Barangay Rodrigo P. Almario during his tenure as Punong Barangay on September 18, 1988. Today, Barangay Kanluran Kabubuhayan remains a vital part of Nagcarlan, Laguna, carrying forward the legacy of its ancestors and the symbolic importance of its name.