History
The Chaco was long the domain of hunting, gathering and fishing peoples — ancestors of the Enxet, Nivaclé, Ayoreo, Ishir, Guaraní Ñandeva and others — who resisted outsiders for centuries. Spanish expeditions from Asunción crossed it in search of the silver of Peru, but colonial Paraguay never settled it beyond a few river forts such as Fuerte Olimpo, founded in 1792.
After the War of the Triple Alliance, Argentina claimed part of the region; in 1878 an arbitration by US President Rutherford B. Hayes awarded it to Paraguay, which named Villa Hayes and the department of Presidente Hayes after him. To raise money, the state sold huge tracts, and companies such as Carlos Casado's built tannin factories at Puerto Casado and other river ports to process quebracho wood, with rail lines into the forest.
Mennonites arrived from the 1920s under a 1921 law that granted exemption from military service and freedom to run their own schools in German: the Menno colony, founded in 1927 by settlers from Canada, Fernheim in 1930 by refugees from the Soviet Union, and Neuland in 1947 after the Second World War.
Bolivia also claimed the Chaco, and the Chaco War of 1932 to 1935 was fought over it, partly in the belief that it held oil. Paraguayan forces under José Félix Estigarribia won the siege of Fortín Boquerón in September 1932 and pushed the Bolivians west, but both sides lost tens of thousands of men, many to thirst and disease. The 1938 peace treaty left Paraguay most of the disputed land. Since the 1990s paved roads, beef exports and clearing for cattle pasture have transformed the region.
