Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. The Federative Republic of Brazil is a union of twenty-six estados and one district, the Distrito Federal which contains the capital city, Brasília. States are generally 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 Federal District is encompassed by the state of Goiás and Minas Gerais. The codes given below are defined in ISO 3166-2:BR. The first administrative divisions of Brazil were the hereditary captaincies, stretches of land leased to Portuguese noblemen or merchants with a charter to build improvements and colonize the land. They were so-called hereditary because the grant was to be passed from father to son, but the crown retained the power of revoking it, which the king indeed did on later 16th century.