South and Central America, east of the Andes, to northern Argentina. Near ponds, lakes, rivers, or swamps in woods with thick undergrowth.
Capybaras are very dependent on water and are well adapted to it.
They swim, dive freely and can stay submerged quite a long time. They also wallow in water to protect skin from hot sun. If disturbed they invariably seek refuge by diving into the water, where they hide with their body completely submerged. They are not nocturnal animals in the true sense, but because they are hunted they are wary and only come out at dawn and dusk to browse. They use hollow shallow beds, and do not dig burrows.