The Cagayan Waterworks Tank, or water tower, started its construction in 1919 and was finished on the 2nd Quarter of 1922. Its water was sourced from Mahuganao spring in Mt. Malasag, Brgy. Cugman.
It survived the bombings of World War II and continued to supply water to the community until the 1970s.
With the establishment of the Cagayan de Oro Water Commission (Now Cagayan de Oro Water District), under the leadership of Mayor Reuben R. Canoy that brought about modern technologies in bulk water acquisition, the water tower was decommissioned.
In 2008, under the leadership of Mayor Constantino G. Jaraula, the water tower was converted into the City Museum of Cagayan de Oro and Heritage Studies Center.