During the seventeenth and eighteenth centuries this area of the country was going through a serious crisis due to population bellicosity of the Indians from Chaco.

The villagers from Tobatí located north of the river Pirapo then called, had to migrate south for the continue attacks by Mbaye-guaicurúes.

There were also some settler farmers who were scattered in existing territories Arroyos y Esteros, 1 de Marzo, Caraguatay and Piribebuy.

Once the Paraguayan War, began a process of founding of major towns and settlements driven by German immigrants during the government of Bernardino Caballero.

Thus, in 1881 saw the founding of San Bernardino, a major tourist resort of Paraguay today Already in the early twentieth century, in 1906, was organized legally the country dividing the territory into departments.

The department is divided in 20 districts: Its capital is the city of Caacupé, located atop the Cordillera de Los Altos.

It is 54 km distant from Asunción and is considered the "spiritual capital" of Paraguay, where La Virgen de los Milagros of Caacupé is venerated at the Basilica (the special place for the Holy Mother), where people walk on pilgrimage every year more than 1.5 million faithful, 7 and December 8.

Lake Ypacaraí attracts tourists to the city of San Bernardino, the main centre of the country in summer.

[citation needed] Other attractions include the Museum Hassler in San Bernardino, the site where the battle was fought in Acosta Ñu in Eusebio Ayala; the Basilica and the churches of Caacupé, Altos, Piribebuy, Valenzuela and Atyrá that still retains its original Franciscan altarpiece.

It has strange ways of rocks that have received names like Leon semi dormido (lion that almost asleep), Yvytu Silla, Gigantesco Batracio and others.

The area produces a variety of handicraft products such as encaje ju (embroidery made by hand), ponchos sesenta listas (typical cloth worn in winter), embossing leather, wood and other work.