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Subdivisions of Brazil

Politically, Brazil is a Federation of 26 states (estados) and one federal district (Distrito Federal) which contains the capital city, Brasília. The states are subdivided into municipalities. States are based on historical, conventional borders and have developed throughout the centuries; though some boundaries are arbitrary. The federal district is not a state on its right, but shares some characteristics of a state and some of a municipality. The national territory was divided in 1969 by the Brazilian Institute of Geography and Statistics (IBGE), for demographic and statistical purposes, into five main regions: North, Northeast, Central-West, Southeast and South.

In 1943, with the entrance of Brazil into the Second World War, the Vargas regime detached seven strategic territories from the border of the country in order to administrate them directly: Amapá, Rio Branco, Acre, Guaporé, Ponta Porã, Iguaçu and the archipelago of Fernando de Noronha. After the war, the first three territories were retained as states, with Rio Branco and Guaporé being renamed Roraima and Rondônia, respectively. Ponta Porã and Iguaçu resorted to territorial status. In 1988, Fernando de Noronha became part of Pernambuco.

In 1960, the square-shaped Distrito Federal was carved out of Goiás in preparation for the new capital, Brasília. The previous federal district became the state of Guanabara until in 1975 it was merged with the state of Rio de Janeiro, becoming the municipality of Rio de Janeiro.

In 1977, Mato Grosso was split into two states. The northern area retained the name Mato Grosso while the southern area became the state of Mato Grosso do Sul, with Campo Grande as its capital. The new Mato Grosso do Sul incorporated the territory of Ponta Porã and the northern part of Iguaçu. Central Iguaçu went to Paraná, and southern Iguaçu went to Santa Catarina. In 1988, the northern portion of Goiás became the state of Tocantins, with Palmas as its capital.

http://en.wikipedia.org/wiki/States_of_Brazil