Vargem Bonita is a Brazilian municipality located in the west of the state of Minas Gerais.
[2] The city center of Vargem Bonita is located at an elevation of 768 meters just outside the Serra da Canastra National Park.
The São Francisco River passes by the town after it descends from the Serra da Canastra.
When the diamonds ran out the town lost population and has only become more prosperous in recent years with tourism attracted by the Sierra da Canastra National Park.
The word "várzea" refers to the banks of the rivers, often flooded, and sought after by farmers for planting rice and corn.
The highest ranking municipality in Minas Gerais in 2000 was Poços de Caldas with 0.841, while the lowest was Setubinha with 0.568.
In more recent statistics (considering 5,507 municipalities) Manari in the state of Pernambuco has the lowest rating in the country—0,467—putting it in last place.