San Pedro, town, central Paraguay. It lies in the lowlands between the Jejui Guazú and Paraguay rivers. San Pedro was founded in 1786 and lies in a well-watered lowland of savanna and forest whose streams drain westward into the Paraguay River. It is the commercial and manufacturing centre for this area, which produces lumber and cattle and is one of Paraguay’s principal producers of maté (tea). Sawmills and plants for extracting fruit oil are located in the town itself. Most transportation in the region is by river, but roads connect San Pedro and other towns with Asunción. Pop. (2002) urban area, 7,927.