Mason County was in control for three and a half quarters. The Royals had a 14-point lead in the second quarter and were up 57-44 with 4:38 to play and 59-50 with 3:50 left in the game.
Conner Maddox scored five straight points on a fast break layup and a 3-pointer to cut the deficit to four points.
Conner Sweeney's layup made it 61-55 with 1:21 to play.
After two missed 3-point shots and two offensive rebounds by the Panthers, Maddox hit a 3-pointer with one minute to play.
Mason County turned the ball over and Owens Crawford tied the game with a trey from the right wing with 40 seconds to go.
The Royals were playing for the last shot when they committed another turnover with 16 seconds left.
It was Augusta's turn to go for the final shot. Jaylen Lofton tipped the ball away from Crawford, but the ball went to Pugh who swished the game-winning basket from just inside the three-point arc on the left wing.
It's Augusta's third district championship in four years. The Panthers have won nine straight games.
Antwavon "Pig" Williams and Isaiah Garrison scored 20 points apiece for Mason County.
Maddox scored 12 of his 20 points in the fourth quarter. Camryn Snapp kept Augusta in the game by scoring nine of his 19 points in the third quarter.
A (22-6) Crawford 9, Maddox 20, Pugh 5, Snapp 19, Shoemaker 8, Staggs 2
MC (20-10) A. Williams 20, Garrison 20, Lofton 2, Sweeney 4, D. Williams 2, Dunaway 6, Henry 3, Perkins 4
A 13 13 15 22- 63
MC 17 17 17 10- 61