SALTO DEL GUAIR

town, eastern Paraguay. It is situated on the right bank of the Paran River at the BrazilParaguay border. Salto del Guair is the site of one of the earliest colonial settlements in Paraguay, Ciudad Real, which was established in 1556 by Rui Daz de Melgarejo. The original settlement was abandoned in the 17th century. The modern town is linked by bridge to the Brazilian port city of Guara and is a centre of international trade. The local economy is based on the cultivation of Yerba mat (Paraguayan tea) and the exploitation of hardwoods used by the construction industry. Employment opportunities at the nearby Itaip dam project (ParaguayBrazil) attracted many new residents after 1977. Pop. (1982) 7,181.