It is the capital of Maldonado State.
It is located in the southeast of the country. At southeast it boarders on River Plate and Punta del Este, at north on San Carlos, at west on Pan de Azúcar and Piriápolis. It has a population of 50,417 inhabitants.
The origin of its name dates from 1530, year of the return to Spain of Sailor Sebastián Gaboto. In January 1530, Sebastián Gaboto definitly sails to Castilla but in the Bay remained the Tenient bailiff of captain ship "Santa María del Espinar," Don Francisco Maldonado.
The strategical importance of Maldonado bay led one of the Governors of Montevideo, Don Joaquín de Viana, to raise a meagre population in the proximities of Portezuelo (Laguna del Diario) in the year 1755, in order to definitely settle down civilly and militarly in the present bay and then in Gorriti Island, between August 28 and November 25, determined date for the land distribution done by Viana in the above mentioned year. By law of August 27th, 1828, the State of Maldonado was created, including in its jurisdiction the present lands of Rocha and great part of Lavalleja.
It is convenient to think that if in the XVII Century our Atlantic coast could be seen in its formidable commercial and military wealth, in the coming years of practises, and 100% possitives ones, the east coast will aquire universal importance in maritime affairs.
Source: Maldonado County