Bustos was politically and religiously a part of Baliuag before. Later it became a separate parish after a tragic incident, which led to the giving of the name "Bustos".

It was rainy season sometime in1862 when the Spanish curate in Baliuag set aside one Sunday for the baptism of babies from Bustos. The people of Bustos prepared for that occasion but rain continued to pour in torrents until that Sunday. The parents, together with the babies and godparents to be, rode on a "Placenta" which was boats joined together with bamboo flooring extensions amidst the overflowing river. The big ropes pulled by two men, one on each bank of the river, guided it. Unfortunately, on that day, the wind blew hard, more heavy rains fell and the current became stronger so much so that the two men guiding the vessel lost control of it. Big waves hit the "Placenta" and it capsized, leading its passenger to their inevitable fate. Only few who knew how to swim were able to reach the bank of the river and the rest drowned.

The town people never forgot that tragic incident so they worked hard for a church, which they could call their own. High government officials and civic leaders of the community sent resolutions to the Spanish authorities clamoring for their right to be independent from Baliuag. In the year 1867, Bustos was declared an independent municipality thru the painstaking efforts and sacrifices of its inhabitants.

In memory of the babies accidentally drowned on their way to their baptism, the town people unanimously chose the Holy Child as their Patron Saint of Bustos.

The year 1899 marked the beginning of the American period, Bustos again became a part of Baliuag. Bustos people were lovers of freedom so through the untiring efforts of civic spirited citizens, Bustos again was separated from Baliuag and became a distinct municipality on January 1, 1917. It was originally classified as a 4th class municipality due to its small income. But due to an uphill fight towards progress, it was later classified as a 3rd class municipality.