Its current name comes from the Guarani language expression Mbokaja + ty which means ¨land with many macaw palms"[3] It was founded due to a land donation by a Catholic priest named Jose Mariano Duarte.

Jose Mariano, the first priest and possibly the first school teacher in the area, had inherited the lands from his father, General Carlos Duarte.

The first president of its gubernatorial board was Juan de la Cruz Talavera.

[5] Since the XX century, the original territory of Mbocayaty started to be divided to lay the foundations of new towns like Natalicio in 1931, Independencia in 1955 and Bottrell in 1983.

[3] Its irrigated by the Tebicuarymi River and its tributary streams such as Ita, Yaguarete and Gervasia.