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smallest estado (state) of Brazil, located on the southern coast of that country's northeastern bulge into the Atlantic Ocean. It is bounded on the east by the Atlantic, on the south and west by the state of Bahia, and on the north by the state of Alagoas, from which it is separated by the Sao Francisco River. The state capital is Aracaju. Sergipe is named after Serigy, who was a gallant native Indian chief.