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
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