Paete in Laguna is just a short 5-minute drive (or even a jeepney ride) from Pakil. Still within the local narrow winding road below the cliff. It’s somehow more bustling than Pakil on a high afternoon. Cool breeze still blows from the lake but the heat under the sun has somehow made it quite unbearable.
Paete is known to be the “Wood Carving Capital of the Philippines.” The tradition of pag-ukit dates back since time immemorial. Even the national hero, Jose Rizal, mentioned its works in one of his novels. The exquisite talent of the Paeteños have reached overseas with some of their works reportedly displayed and used in some countries such as the Vatican and United States. Even the name itself of the town, Paete, is believed to have come from the Tagalog word “paet” meaning chisel.
The carving industry also gave birth to the taka (papier mache) industry, mostly led by the womenfolks, but is also in its twilight years unless the people and government find ways to arrest the problem.

Source: Wood Carver’s Town: Paete Laguna | HabagatCentral.com