History of Paraguay (to 1811) Buenos Aires in 1580, the steady deterioration in the importance of Asunción contributed to growing political instability within the province. In 1617 the Río de la Plata Province was divided into two smaller provinces: Paraguay, with Asunción as its capital, and Río de la Plata, with headquarters in Buenos Aires. With this action, Asunción lost control of the Río de la Plata estuary and became dependent on Buenos Aires for maritime shipping. In 1776 the crown created the Viceroyalty of Río de la Plata; Paraguay, which had been subordinate to Lima, now became an outpost of Buenos Aires. Located at
San Salvador, Paraguay San Salvador, Paraguay San Salvador is a district of the Guairá Department, Paraguay. It is located in 18 kilometers southwest of Villarrica, the capital of the department, over the old train rails. It's also known as the former Borja station. The activities of the inhabitants are agricultural and cattle growing. Every January 6 the streets are decorated and the people gets ready for the Mass directed by the Bishop of the Villarrica Dioceses. Every year the people celebrate the party honoring its saint patron Child Savior of the World. His image could be found in the church of the same