The legend of the Rattanarangsarn Palace is intertwined with the history of Ranong. In 1890, King Chulalongkorn (Rama V) made his first journey to the western coastal town of Ranong. Phaya Rattanasetthi (Kozim Kong, the governor of Ranong) constructed a reception pavilion on Kwan Hill, located in the heart of the town, built robustly with a combination of bricks and hardwood. His intention was to offer this structure as a royal tribute to honor the great kindness that the King had shown to his family lineage. The King resided at the Rattanarangsarn Pavilion for three nights, from April 23 to 25, 1890. During his visit, King Chulalongkorn expressed his admiration, stating, “… it is beautifully and solidly constructed, fitting to be a palace, more than just a pavilion…” Thus, he bestowed the name "Rattanarangsarn Palace" to honor the city of Ranong and the family of Phaya Rattanasetthi. However, he contemplated that since he would visit Ranong infrequently, the palace would fall into disrepair if left unused. Therefore, he granted permission for the palace to be used as a government hall and for civic ceremonies, arranging for it to be set up as a royal residence only during his future visits.