Pedro Juan Caballero () is a Paraguayan city in the Amambay Department of which it is the capital. The city lies on the border with the Brazilian city of Ponta Porã in the state of Mato Grosso do Sul and is known as a centre for cheap electronic and consumer goods, and also as a centre for drug smuggling. This city is the highest city in Paraguay at 670 m (2201 ft) above sea level and is named after Pedro Juan Caballero. Pedro Juan Caballero counts with the Dr. Augusto Roberto Fuster International Airport and the country's most modern shopping centre, the Shopping Dubai, which cost US$30million. The Blue Lagoon Amambay Hotel & Residential Complex is located in the city, the hotel is modernly structured and Paraguay.com considered it a First World condominium. The city is home to the Club Sportivo 2 de Mayo, counting with the Monumental Río Parapití which was used for the 1999 Copa América and is Paraguay's fifth biggest football stadium. History Pedro Juan Caballero originated around a small lake. The city based its economy initially on the processing of yerba mate (it is located in the south end of the herds of Tacurupyta, that, after the War of the Triple Alliance, were almost totally passed into the hands of Brazil) and the forest exploitation. On December 1, 1899, a police station was built, near the Punta Porá Lagoon, a date that is considered to be that of the creation of the city. Some scholars, however, consider that the correct date of foundation is August 30, 1901. In 1899, merchant Don Jorge Casaccia, owner of large tracts of land, plantations and an import-export company founded at the end of the War of the Triple Alliance, a large shareholder of "La Industrial Paraguaya" and the "Mercantile Bank", ceded to the government a land for the settlement of the population, according to SA Cardona. The first house was built in 1894, owned by Don Jose Tapia Ortiz, although it actually settled in a place called "Portera", a year after the foundation of Ponta Porã. But as early as 1893, Don Pablino Ramirez had settled with his wagons and footpaths on the shores of Lake Punta Porá, making it difficult to known for sure who was the first "official" Pedrojuanino. Pedro Juan Caballero was founded on December 1, 1900. On December 13, 1901, the first peace court was created,