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Paraguay River The Paraguay River runs through Brazil, Bolivia, Paraguay and Argentina. It runs close to the border between Brazil and Bolivia, and the border between Paraguay and Argentina. The River starts in the Brazilian state of Mato Grosso, and flows in a southern direction for about 2,549 kilometers, which is about 1,584 miles. It flows until its intersection with the Parana River on the southern border of Paraguay (Country reports). This river splits Paraguay in half, with northern Paraguay to the west, and southern Paraguay to the east. This river is the key geographical feature of the country. Rio de Paraguay, as it is said in Spanish, is the second most navigable river in South America next to the Amazon River (CIA). This river has not been dammed for hydroelectric power generation, and is the primary waterway of the Pantanal Wetlands. The Paraguay River is very important for trade and shipping because it provides the only link to the Atlantic Ocean from an otherwise landlocked country along with Bolivia. The river is also very important for fishing and providing irrigation for agriculture. Many fishers rely on the river to produce an income. Many fishermen live along the banks of this river, fishing and selling the fish they catch to local fish markets. This has however caused many problems in large cities like the capital Asuncion. Many poor farmers from interior cities have moved to the banks of the river in hopes of an easier lifestyle. The problem arises when the river floods, causing inhabitants of the river to seek temporary shelter away from the river (Paraguay). The Paraguayan military has had to dedicate land to the housing of these people who were driven away from their homes due to flooding.