Encarnación, city (1992 pop. 56,261), capital of Itapúa dept., SE Paraguay, a port on the Paraná River. It is the commercial center for a rich agricultural region. Industries in the city produce textiles, food products, timber, and hides. Encarnación was founded as a Jesuit mission in 1632. It was almost completely destroyed by a tornado in 1926. The Yacyretá hydroelectric dam spans the Paraná near the city.
Encarnación is a city in southeastern Paraguay. It is situated 235 miles south-east of the capital Asunción on the Paraná River, opposite the Argentine city of Posadas. The two cities are linked by the San Roque González de Santa Cruz Bridge. Encarnación is the capital of the department of Itapúa and has a population of 69,769 (2002 census).

The city was founded by the Jesuits in 1615. It gained in importance after the coming of the railway in 1854. In 1957, the city was made the seat of the Roman Catholic Diocese of Encarnación. Today the city is divided into two main sections - the old city by the river and the newer business district inland. Because of its mild climate Encarnación is often called "The Pearl of the South".

Most of the inhabitants are of Spanish descent as in the rest of Paraguay but there are also minorities of Germans, Ukrainians, Japanese, Koreans, Arabs, New Zealanders, Chinese and Poles.

Encarnación was the birthplace of Alfredo Stroessner, dictator of Paraguay from 1954 to 1989.

It is also the "Carnival" Capital of Paraguay, a yearly celebration of mostly Brazilian music and dance.

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