Cagayan Valley - The Smiling Beauty The original inhabitants are of the Malay race that traded with Malaysians, Chinese, Japanese and the Indians long before the Spaniards came to the islands. The province of Cagayan is the second largest province of the Philippines. Its vast territories includes the easter parts of the Cordilleria region. The vallye is surrounded by the Cordilleria and Sierra Madre Mountains. Cagayan is composed of provinces, Isabela, Cagayan, Nueva Viscaya, Batanes and Quirino