Caazapá is a city in Paraguay, founded in 1607, by Friar Luis de Bolaños. It is located in the Caazapá District and is the capital of the Caazapá …Caazapá is a city in Paraguay, founded in 1607, by Friar Luis de Bolaños. It is located in the Caazapá District and is the capital of the Caazapá Department. There are five neighbourhoods called "Barrios" in the city: Then main one is the Barrio San Pablo, the other 4 are: Barrio Santa Teresita, Barrio San Blás, Barrio San Antonio, and Barrio San Roque-within which is the original Chapel, built by franciscans during the Spanish rule in Paraguay. The Franciscan mission at Caazapá was an important event in Paraguayan cultural heritage.