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 Chaco at over 200.000 hectare for 2008 alone The department's most important activity by far is cattle ranching, both extensive in the savannas of the east and intensive on the planted pastures of cleared land. Cultivation of sorghum, sugar cane and (in planning stage as of January 2009, for the arid west) jatropha are very recent developments. The department is divided into five districts: 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