Brazilian territory. After being persecuted and the attacked by the Bandeirantes, the city suffered a migratory process which took people to seven different sites before finally being established in 1682 near the Ybyturuzu River, where it is currently located. The Franciscan missionaries helped with the process of consolidation, and in 1686 they founded a Guarani reservation in the Itape zone. In 1906, the fifth department was created, composed of Villarrica in addition to Itape, Hiaty, Mbocayaty and Yataity. During the 20th century, there was great exploitation of the forest as well as the Yerba mate in the zone, which is closely linked to the rich region of the Caaguazú Department. Villarrica became a very important urban center, as the train crossed from East to West through a great part of the department's territory, which contributed as a means of communication in the department's development. Flag The flag is divided in two horizontal zones of similar dimensions. The upper zone, a light blue, is related to the water and the sky; the lower zone, a red, symbolizes the grapes. The colors also reconfirm the range and category of the Catholic Church's supreme hierarchies. Shield The shield is divided into four parts, where there is a typical colonial-style house, and the zone's landscape, which includes the Ybyturuzu mountains, grapes and the sugar cane plant. There is also a book, with the Roman numerals corresponding to the department of Guaira. Also, one can see shapes referring to nature. In the center of the shield there is a butterfly, which is a reference to panambi. The bottom of the shield says "Tradition Culture". Economy Guairá is a predominantly agricultural department. It is the country's most important sugar cane producer, with 41% of the national output; it is also the main producer of Paraguayan wine. Other crops include cotton, soybean, maize, vegetables and fruits. The indiscriminate felling of the forests has reduced the forest activity; nevertheless, the department possesses sawmills and factories for cabinet-making etc. The industrial activity is marked by vintners, herbal mills, alcohol distilleries, footwear industries, scale factories, dairy industries and tanneries. Communication ways The Departament contains the Number 8 Blas Garay Road, which starts in Coronel Oviedo from the Number 2 and 7 Roads, and is paved until Caazapa. From the Ñumi district there is another paved part that connects to San Juan Nepomuceno. It also has other paved roads: Villarica–Paraguari, through