In the 16th and 17th centuries, European settlers in the present-day department of Caaguazú were threatened by the Portuguese Bandeirant and Guaicurú Indians, preventing permanent settlement of the land for many years.

Caaguazú is the home department of several Paraguayan personalities, such as the writer Mario Halley Mora and the musician Cayo Sila Godoy.

To the west there are formations of fluvial and glacial origins that date from the Carboniferous period (Paleozoic era), with sandstone soils.

To the east, the soil is also of fluvial origin, lacustrine and marine, dating to the Permian period.

The territory is made up of a succession of valleys and elevated lands that range from the north to the south.

In the north, there are valleys with ample fields apt for cattle; to the east, forests and natural herbal lands predominate.

The principal activity of the region is the harvesting of trees, which provides the raw material for the wood industry.

Some plant species in danger of extinction are the yvyra paje, nandyta, cedar and tumera aureli.

The department of Caaguazú is the number one national producer of manioc in the country and the second in cotton and sugar cane production.

They cross the entire department, connecting Asunción in the west with Ciudad del Este in the east.