The British Irrawaddy Flotilla Company established the current town in the late 19th century on the Ayeyarwady River (Irrawaddy River) as a transshipment point for cargo between Upper and Lower Burma.
The district of Pyay encompasses the valley of the Ayeyarwady, located
between Thayetmyo, Hinthada and Tharrawaddy districts. Along the western side of
Pyay District are the Rakhine (Arakan) Yoma mountain ranges, and along the
eastern side are the Bago (Pegu) Yoma mountain ranges. Pyay District's main towns
are Pyay, Shwedaung, and
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