Background The
Treaty of Tordesillas signed by
Castile and
Portugal set ambiguous borders between the two empires in
South America. Portugal took an aggressive and expansionist policy and usually disrespected the agreements of the treaty. Meanwhile, the
Spanish in
Asuncion decided to settle more towns to the east closer to the Portuguese border to reinforce their territorial claims. In the 1550s, what is now Paraguay was a province of the
Governorate of New Andalusia and was ruled by Captain
Domingo Irala. Under the command of Irala, the city of
Ontiveros was founded to continue the conquest of the lands to the east of
Asuncion known as the
lands of Guayrá. In 1557,
Ruy Diaz Melgarejo founded another city in Guayrá named
Ciudad Real with the purpose of reducing the abuse that the Portuguese were inflicting on the
Cario Indigenous tribe but also due to the strategic location as a trail towards
Brazil. A couple of years later, the interim Governor Felipe de Cáceres has a personal dispute with Melgarejo and drove him out of the office of governor of the
province of Guayra. Cáceres appointed an
Andalusian conquistador named Alonso Riquelme to replace Melgarejo. When Riquelme arrived in Ciudad Real, Melgarejo had him arrested, incarcerated and later banished to a cabin forty
leagues away from the town.
Settlement , Brazil. In the 16th century,
Melgarejo departed from Ciudad Real with 40 men and 53 horses towards the East where he expected to find mines of
gold and
silver. After arriving in the lands of an
Indian chief named Cuaracybera (Shining-Sun), he settled a new town on May 14, 1570, and named it
Villa Rica del Espíritu Santo (Wealthy village of the Holy Ghost) because of the belief that there were precious metals in the area and because the date was near the
Catholic festivity of the
Holy Ghost. In 1592, explorer Ruy Díaz de Guzman moved the city 100 km east. In 1599, he moved it again, this time near the Mboteitei River, 100 leagues from Asunción. After long years of peaceful existence, the city was invaded in 1632 by the
bandeirantes, and after 4 years of pilgrimage the population settled near
Mbaracayu hills. Two years later, Governor Valderrama determined to situate it in the fields of Yaru. In 1642, the population moved to
Curuguaty. In 1678, the population settled close to the Tobatyry River, in a place called
"Espinillo". The soil was not good for agriculture, so many people decided to do a recognition expedition of the area beyond the
Tebicuarymi River. On the other side of the river, they found fertile land and several
streams near the Ybytyruzú hills, so they requested the Spanish Governor's authorization to move the city again. On May 25, 1682, the Governor issued the license to settle in Ybyturuzú to await the
King's official approval. On May 14, 1701 King
Philip V issues the
Royal Order that approves the permanent settlement of the city in Ybyturuzú. This date became the ultimate date of foundation. The
Franciscan missionaries helped the town's stabilization, founding the Guaraní
Mission of
Itapé. As a result, the city got the nickname of "Wandering City".
1600s to 20th century The
Franciscan friars in an effort of educating the population and gaining souls to the Catholic faith ran a convent that worked as an elementary and secondary school from the 1600s until 1818 when
Gaspar de Francia the dictator of Paraguay had it shut as part of his policy of retaining absolute control over the country. Schools were reopened in 1844 after Francia died only to be shut again in 1865 with the declaration of the Paraguayan War. When the war was over in 1870, Villarrica had a very small population due to the large casualties. In 1888, the railway got to Villarrica, starting rapid demographic and economic growth. From 1892 to the beginning of the 1900s, the city received an important influx of
Italians,
French,
Spaniards,
Germans,
Ashkenazi Jews,
Argentines,
Uruguayans and a lesser number of
Lebanese,
Croats and
Greeks. These immigrants helped develop industry, culture and education, making Villarrica the second most important city after the capital,
Asuncion. However, the two Paraguayan civil wars had a deep effect in the city, especially the so called
Revolution of 1947 when the Paraguayan military took over and cause the migration of thousands of Paraguayans and an important part of Villarrica intellectual people spread across the country or made it to Argentina. A similar phenomenon occurred from 1954 to 1989 with the political persecutions during the regime of
Alfredo Stroessner. By the end of the 20th century Villarrica had lost its prominent position within the country to newer settlements like
Ciudad del Este,
Encarnacion and
Luque. == Geography ==