Nicaragua is a republic in Central America. It is the largest Central American nation but the least densely populated. It is bordered on the north by Honduras and on south by Costa Rica. Its western coastline is on the Pacific Ocean, while the east side of the country is on the Caribbean Sea. The countrys name is a combination of Nicarao, the most populous indigenous tribe when the Spanish arrived, and the Spanish word Agua, meaning water, after the two large lakes in the west of the country, Lago Managua and Lago Nicaragua.