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
Geography of Paraguay the river enters Paraguay, the Paraná River flows 800 km to its juncture with the Río Paraguay and then continues southward to the Río de la Plata Estuary at Buenos Aires, Argentina. In general, the Río Paraná is navigable by large ships only up to Encarnación, Paraguay but smaller boats may go somewhat farther. In summer months the river is deep enough to permit vessels with drafts of up to three meters to reach Salto del Guairá, but seasonal and other occasional conditions severely limit the river's navigational value. On the upper course, sudden floods may raise the water level