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
Paraguay River the river's banks sometimes forces many thousands of displaced residents to seek temporary shelter until the waters recede from their homes. The Paraguayan military has been forced to dedicate land on one of its reserves in the capital to emergency housing for these displaced citizens. The river is a tourist attraction for its beauty. The Paraguay River is the primary waterway of the Pantanal wetlands of southern Brazil, northern Paraguay and parts of Bolivia. The Pantanal is the world's largest tropical wetland and is largely dependent upon waters provided by the Paraguay River. Owing to its importance as a navigable