As a town Bani was founded around the year 1762 with the original name of San Simon. The original site of the old town is in Barrio Namagbagan which is located some three kilometers west of the present site. The name Bani was adopted since 1816. The town was transferred to its present location in 1857. Originally a part of Zambales, Bani was aggregated to the province of Pangasinan on May 10, 1903.