La Paz is the capital city of the La Paz Department of Honduras. The town, founded in 1792, has a population of 32,450. La Paz is located 750…La Paz is the capital city of the La Paz Department of Honduras. The town, founded in 1792, has a population of 32,450. La Paz is located 750m above sea level on the Comayagua River near the Cordillera de Montecillos in an area that has mountainous terrain with thick jungle cover.