Encarnación (ĕngkärnäsyōnˈ) [key], city (1992 pop. 56,261), capital of Itapúa dept., SE Paraguay, a port on the Paraná River. It is the commercial center for a rich agricultural region. Industries in the city produce textiles, food products, timber, and hides. Encarnación was founded as a Jesuit mission in 1632. It was almost completely destroyed by a tornado in 1926. The Yacyretá hydroelectric dam spans the Paraná near the city.