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Post-independence period

After Paraguay became independent, significant change occurred in Asunción. Under the rule of Gaspar Rodríguez de Francia (in office 1813–1840) roads were built throughout the city and the streets were named. However, during the presidency of Carlos Antonio López (President 1844–1862) Asunción (and Paraguay) saw further progress as the new president implemented new economic policies. More than 400 schools, metallurgic factories and the first railroad service in South America were built during the López presidency. After López died in 1862, his son Francisco Solano López became the new president and led the country through the disastrous Paraguayan War that lasted for five years (1864–1870). On 1 January 1869, the capital city Asunción fell to Brazilian forces led by Gen. João de Souza da Fonseca Costa. After the end of the armed conflict, Brazilian troops occupied Asunción until 1876.

Many historians have claimed that this war provoked a steady downfall of the city and country, since it massacred two-thirds of the country's population. Progress slowed down greatly afterwards, and the economy stagnated.

After the Paraguayan War, Asunción began a slow attempt at recovery. Towards the end of the 19th century and during the early years of the 20th century, a flow of immigrants from Europe and the Ottoman Empire came to the city. This led to a change in the appearance of the city as many new buildings were built and Asunción went through an era more prosperous than any since the war.

A tramway in Asunción opened in 1871, initially using horse-drawn trams and steam-powered trams, with electric trams being introduced in 1913. The last tram service was discontinued around 1995, followed by formal closure in November 1997.