in 1889 the first hydroelectric powerplant of Latin America (Marmelos Zero) was built on the Paraibuna river on the outskirts of the city along the Estrada União e Indústria. As both foreign and domestic capital fueled the industrial boom the city became a major centre (becoming the largest urban area of the state). By first decade of the 20th century Juiz de Fora was among the main textile and industrial producers in South America and in Brazil particularly. The city's wealth was second only to major cities such as São Paulo and Rio de Janeiro. But as the coffee rush frontier moved southwestwards it reached the state of São Paulo and its immensely fertile plateaus which became the richest in the federation and industry flourished there as it had in Juiz de Fora itself. The city of Juiz de Fora became the major industrial centre in a state that was being much surpassed by São Paulo in industrial output, and worse still much of the wealth generated by the state (a large bulk by Juiz de Fora itself) was being used in the building of the new state capital Belo Horizonte (replacing Ouro Preto at the centre of the gold region), founded at the end of the 19th century and which, in the Brazilian and Latin-American tradition of centralization, was intended to be the largest city of the state. The Great Depression of the 30s worsened the city's decay which would only be overcome five decades later. By the 1940s the city had lost its nationwide influence due to the continued growth of Belo Horizonte and the loss of industry. The city's decay can be seen in the figures for its population which remained stagnant from the early 1930s to the late 1960s. By the mid-1970s, the city started to experience new growth, which continues to this day. This new era began with the establishment of a federal university (UFJF) in the city and the decision by the Brazilian military junta (1964–1985) to promote the city as a major military centre. This sparked a phenomenon rarely experienced by post-industrial towns: the industrial rebirth of the city, this time following Brazilian industrialization itself, based on heavy-industry such as steel and engineering. Recently, the city seems to be experiencing a new era in its history, again following a boom in Brazilian economy, and is reinventing itself as a major centre for services