Long time before its creation into a barangay, the place which is now known as Barangay Gamuton was just a sitio under the vast territorial jurisdiction of Barangay Poblacion. It is located at the territorial boundery of two municipalities of Alegria, Surigao del Norte and Kitcharao, Agusan del Norte in the south. However, these two municipalities explicitly announced their individual claims over the territorial control over the Sitio Gamuton. The people living in the contested area at Sitio Gamuton had felt anxiety and pose question of where they really belong.

The Local Government Unit of Alegria negotiated with the Municipality of Kitcharao and present their validity of claim based on the legality of Republic Act 5239 which stipulate the inclusion of the Sitio Gamuton as part of the vast territory of Barangay Poblacion of Alegria. It happened upon the establishment of the town of Alegria as one of the independent municipality in Surigao del Norte. In addition to, the municipal administration at that time under the discretion of Mayor Ruben O. Zamora and Vice-Mayor Roberto Ugay look viable ways and means to convert Sitio Gamuton inot an independent barangay.

With the assistance and administrative permission of the mother barangay Poblacion under the leadership of Barangay Captain Erlinda Rebojo, a plebiscite was successfully initiated for the purpose of making the Sition Gamuton into a barangay. Fortunately the, with concurrence of the Commission on Election (COMELEC) and with the highest support of the Local Government, the Sitio Gamuton officially became a self-governing barangay on September 16, 1990 under the admission of Sannguniang Panlalawigan Resolution No. 62 and SP Order No. 16 series of 1990.