Ypacaraí Lake is a major body of water located in Paraguay, about 50 kilometres (31 mi) east of the capital, Asunción.

It is surrounded by three cities: Areguá, Ypacaraí, and San Bernardino, the last two (Costa Lago and Asunción) being located on its shore.

It is one of Paraguay's two main lakes, providing water for drinking and irrigation, and is also the site of many leisure activities.

As a result of the proliferation of toxic algae or cyanobacteria, as well as nearby livestock farms, residential areas, large-scale deforestation, and land development, the lake is the most polluted in Paraguay.

The artisan center of La Cuenca hosts a fair where local artists exhibit their work.

The September gathering hosts folk expression and Paraguayan art, including concerts, dance and theater.

According to the City Chamber, the festival “tries to rescue and reinforce the artistic heritage of the Paraguayan culture”.

Artists can show their work here for free, and there is also a history museum, a public library and classes in acting and dance.