Guanyin District was given the name "Shiguanyin" in the early Qing Dynasty because a farmer found a piece of white stone looking like the Avalokitesvara. It was then renamed as Guanyin in 1920.
Though the district occupies an area of 87.98 km2, it has a population of only 73,026 people. Most local residents are Hakka people and have settled in Caoluo, Xinpo and Guanyin. Caoluo is in the northeast and refers to the area in the east of Dachu. Japanese scholar Hisataka Shoji found that historical site at Caoluo in 1937 at the back of Fuxing Temple within Shulin Village . It is the oldest known Stone Age historical site in Taiwan. The Gancuan Temple, Zhuang's Ancient House, and Baishajia Lighthouse are well-known spots in the district.