The word Peru is derived from Birú, the name of a local ruler who lived near the Bay of San Miguel, Panama, in the early 16th century. When his possessions were visited by Spanish explorers in 1522, they were the southernmost part of the New World yet known to Europeans. Thus, when Francisco Pizarro explored the regions farther south, they came to be designated Birú or Peru. The Spanish Crown gave the name legal status with the 1529 Capitulación de Toledo, which designated the newly encountered Inca Empire as the province of Peru. Under Spanish rule, the country adopted the denomination Viceroyalty of Peru, which became Republic of Peru after the Peruvian War of Independence.