The government has invested in a new capital, a major hydropower dam, railroads and related infrastructure to develop this primarily agricultural area.

The Araguaia and Tocantins rivers drain the largest watershed that lies entirely inside Brazilian territory.

[8] Tocantins is bordered to the northeast by the states of Maranhão and Piauí, Bahia to the east, Goiás to the south, Mato Grosso to the west, and Pará to the northwest.

[citation needed] Most of Tocantins (except the extreme western and northern regions) is situated within a vast Brazilian area known as the cerrado.

The cerrado region's typical climate is hot and semi-humid, with pronounced seasonal variation marked by a dry winter from May through October.

[10] The "cerrado" landscape cover 87% of Tocantins and is characterized by extensive savanna formations crossed by gallery forests and stream valleys.

The "cerrado" trees have characteristic twisted trunks covered by a thick bark, and leaves that are usually broad and rigid.

The plant's thick bark and roots serve as adaptations for the periodic fires which sweep the cerrado landscape.

Along the western boundary of the state is the floodplain of the Araguaia River, which includes extensive wetlands and Amazon tropical forest ecosystems.

Where the two branches meet again they form an inland delta called Cantão, a typical Amazonian igapó flooded forest.

The Araguaia is also one of the main links between the Amazonian lowlands and the Pantanal wetlands to the south, but the river is not fully navigable.

Portuguese Jesuit missionaries explored what is today Tocantins state about 1625, seeking to convert the Amerindian peoples of the area to Christianity.

[11] Since the 17th century, this area was relatively isolated by rivers navigable only in short portions and mountains, and difficult to access.

[citation needed] After the government levied heavy taxes on mining in 1809, local residents began to organize a separatists movement.

[citation needed] In the 1970s, the population of northern Goiás lobbied the government to establish a separate state.

Tocantins' economy is based on an aggressive expansionist model of agro-exports and is marked by consecutive records of primary hyper-surpluses: its exports reveal its strong agricultural inclination.

Following the example of neighboring states (Mato Grosso and Goiás), it is becoming a major grain producer (soy, corn, rice).

[21] Its industry is mainly agroindustry, centralized in six districts located in five pole cities: Palmas, Araguaína, Gurupi, Porto Nacional and Paraíso do Tocantins.

[22] In the tertiary sector (commerce and services), its main activities are concentrated in the capital Palmas and also in the cities that are located on the side of the Belém-Brasília Highway (BR-153 and BR-226).

This highway is vital for Tocantins, as it cuts the state from north to south and allows for a better performance in the economic growth of the cities located on its banks, serving as a warehouse for road transport and services for travelers.

In addition, the Belém-Brasília Highway also facilitates the flow of production from Tocantins to other states and to ports on the coast.

The railway already connects Açailândia to Anápolis, but the section south of Porto Nacional is not operated regularly as there are no yards for loading/unloading wagons.