History of Paraguay its capital, and Río de la Plata, with headquarters in Buenos Aires. With this decision, 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 a provincial outpost of Buenos Aires. Located at the periphery of the empire, Paraguay served as a buffer state. The Portuguese blocked Paraguayan territorial expansion in the north, native tribes blocked it – until their expulsion – in the south, and the Jesuits blocked it
Alto Paraguay Department Alto Paraguay Department Alto Paraguay (; "Upper Paraguay") is a sparsely populated department of Paraguay. The capital is the town of Fuerte Olimpo. In 1992 the Chaco Department was merged with Alto Paraguay, effectively recreating the original department Olimpo as it existed until 1945. Alto Paraguay contains a varied and large amount of natural resources, which is why this department is home to several national parks, each with different characteristics. The Defensores del Chaco National Park is the largest in the Paraguayan territory. The mentioned park is home to the hill Cerro León, which is the highest point in the