In the Leao-Butia Coalfield, Rio Grande do Sul the coal seams occur in the Rio Bonito Formation, Guata Group, Tubarao Supergroup of the Parana Basin, Brazil and are of Permian (Artinskian-Kungurian) age. This study is the first detailed investigation on the coal petrographic characterization of the coal-bearing sequence in relation to the depositional settings of the precursor mires, both in terms of whole seam characterization and in-seam variations. The study is based on the analyses of nine coal seams (I2, CI, L4, L3, L2, L1, S3, S2, S1), which were selected from core of borehole D-193, Leao-Butia and represent the entire coal-bearing sequence. The interpretation of coal facies and depositional environment is based on lithotype, maceral and microlithotype analyses using different facies-critical petrographic indices, which were displayed in coal facies diagrams. The seams are characterized by the predominance of dull lithotypes (dull, banded dull). The dullness of the coal is attributed to relatively high mineral matter, inertinite and liptinite contents. The petrographic composition is dominated by vitrinite (28-70 vol.% mmf) and inertinite (> 30 vol.% mmf) groups. Liptinite contents range from 7 to 30 vol.% (mmf) and mineral matter from 4-30 vol.%. Microlithotypes associations are dominated by vitrite, duroclarite, carbominerite and inertite. It is suggested that the observed vertical variations in petrographic characteristics (lithotypes, microlithotypes, macerals, vitrinite reflectance) were controlled by groundwater level fluctuations in the ancient mires due to different accommodation/peat accumulation rates. Correlation of the borehole strata with the general sequence-stratigraphical setting suggests that the alluvial fan system and the coal-bearing mudstone succession are linked to a late transgressive systems tract of sequence 2. Based on average compositional values obtained from coal facies diagrams, a deposition in a limno-telmatic to limnic coal facies is suggested. (c) 2007 Elsevier B.V. All rights reserved.