Caraga
On February 23, 1995, the Caraga region was created through the issue of Republic Act No. 7901 during the administration of President Fidel Ramos. The provinces of Agusan del Norte, Agusan del Sur and Surigao del Norte (of the former Northern Mindanao region) and Surigao del Sur (of the former Southern Mindanao region) were annexed as part of the newly-created region.
Butuan
However, by the early 1980s, the logging industry of the city began to decline, although the city was still an economic haven to many investors. The city's main income by that time frame and until this day depended on small and medium business, and large-scale projects by investors. On February 7, 1995, the city was reclassified from a chartered city to a Highly Urbanized city. sixteen days later, on February 23, the region of Caraga was created by virtue of Republic Act 7901, with Butuan as its regional center, and the provincial capital of Agusan del Norte. In 2000, Republic Act 8811 formally transferred the capital of Agusan del Norte from Butuan to Cabadbaran, however most provincial offices are still located in the city.