In the year 1998, Calapan was converted from a municipality into a component city by virtue of Republic Act No. 8475. Leviste and was signed by President Fidel Ramos on February 2, 1998. On March 21, 1998, the people of Calapan ratified the creation of the City of Calapan in a plebiscite marking the same day as the city’s foundation day. Incumbent Mayor Arnan C. Panaligan became the last Municipal
Mayor and the first City Mayor of Calapan. To date, it is the first and only city in the whole island of Mindoro. Since attaining cityhood, Calapan has witnessed significant improvements in commerce and industry, infrastructure and social services. New commercial establishments were opened providing employment and income opportunities for the residents An expanded program on social services delivery, particularly in health care and education, were undertaken. The city’s physical infrastructure was upgraded, which includes the construction of new roads and drainage facilities, as well as a new City Government Center. Tourism was boosted with the opening of inland resorts and new hotels. Malls had also started rising in the city to cater more to the shopping needs of its people. Sports and events tourism were also strengthened as was seen with the large influx of tourists in the city during the MIMAROPARAA, ALCULYMPICS and Ms. Earth Long Gown Competition all in 2011, proofs that indeed the city is capable of handling regional and national activities. Calapan boasts of many notable accolades and recognitions that it had garnered under its belt over the past years ever since becoming a city all of which serve as proofs of the city's continuing efforts to improve its standing and cement its reputation as one of the most livable cities in the country. Calapan was reclassified from a 4th class city in 2007 to a 2nd class city in 2010, on account of its innovations in public service, modernization programs, increased revenue collection, and overall economic improvement.