The Serra do Papagaio State Park is divided between the municipalities of Aiuruoca (15.76%), Alagoa (5.38%), Baependi (39.93%), Itamonte (34.54%) and Pouso Alto (4.39%) in Minas Gerais.

[1] The park is located in the Mantiqueira Mountains, and includes parts of the Garrafão and Papagaio ranges.

It is the source of the headwaters of major rivers that form the Rio Grande.

[2] Construction of a hydroelectric power plant in the municipality of Aiuruoca, within the Serra da Mantiqueira Environmental Protection Area and part of the Serra do Papagaio State Park, has caused outrage in the local community and environmentalists.

It is part of a program to build 65 small hydroelectric plants in Brazil, including 33 in Minas Gerais, which would threaten the last remnants of riparian forest in the state.