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 Geography of Paraguay Paraguay is a landlocked country in South America, bordering Brazil, Argentina and Bolivia. The Paraguay River (Spanish: "Río Paraguay") divides the country into strikingly different eastern and western regions. Both the eastern region (officially called Eastern Paraguay, "Paraguay Oriental", and known as the Paraneña region) and the western region (officially Western Paraguay, "Paraguay Occidental", and known as the Chaco) gently slope toward and are drained into the Paraguay River, which separates and unifies the two regions. With the Paraneña region reaching southward and the Chaco extending to the north, Paraguay straddles the Tropic of Capricorn and experiences