San Bernardino is a town in Paraguay, located on the shores of Ypacarai Lake in the Cordillera Department. It is a popular holiday resort for pe…San Bernardino is a town in Paraguay, located on the shores of Ypacarai Lake in the Cordillera Department. It is a popular holiday resort for people from Greater Asunción. The town was founded in 1881 by German and Swiss immigrants, among them Santiago Schaerer, founder and first colony manager, and was renamed after Saint Bernard to honor Bernardino Caballero, president of Paraguay between 1880 and 1886.