In 1935, the National Road was reconstructed and cemented, residents near the foot of the mountain south of the national road, transferred their homes along the highway. The old residential site was transformed into rice fields.
When World war II broke out in December 1941, the people evacuated to Sitio Surcoc, the farthest sitio of the Barrio. The Japanese Army used the Municipal Building as their garrison. From early 1942 – 1943. The Japanese Governmentr extended the operations of Manila Railroad to Sudipen with station at Barrio San Rafael later renamed Poblacion, meaning “ converging point “ or “ center “. Economic prosperity came about by commerce and trade. Businessmen coming from as far as Laoag City, flocked to Sudipen with their goods for transport. During the liberation in 1946, Filipino Soldiers buried most of the buildings but the “bodega” or train station” and the Municipal Building were spared. After the war, the train station was used to house the Sudipen Central School.