The lesser capybara mainly inhabits areas close to water such as marshes, ponds, and lagoon habitats as these places offer water, which is essential for these capybaras to fulfil their niches' of maintain body temperature homeostasis, provide suitable food, hide from predators, and mate. They were first observed in Pacific river valleys in Panama as early as 1912 as a subspecies of the common capybara. However, after thorough studies on the anatomy and genealogy of them, the lesser capybara was classified as its own species some time in the 1980s. Currently, this species has expanded its range to parts of Eastern Panama and Western Colombia and Venezuela, just west of the Andes Mountains. The lesser capybara constitutes the northernmost population of any extant capybara species, other than the now
extinct H. hesperotiganites from
Pleistocene California. == Diet ==