Bluefields is the capital of the South Caribbean Autonomous Region in Nicaragua. It was also the capital of the former Kingdom of Mosquitia…Bluefields is the capital of the South Caribbean Autonomous Region in Nicaragua. It was also the capital of the former Kingdom of Mosquitia, and later the Zelaya Department, which was divided into North and South Caribbean Coast Autonomous Regions. It is located on Bluefields Bay at the mouth of the Bluefields River in the municipality of the same name.