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Ngerulmud (ŋəˈɾulmuð) is the seat of government of the Republic of Palau, an island nation in the Pacific Ocean. It replaced Koror City, Palau's largest city, as the capital in 2006. The settlement is located in the state of Melekeok on Babeldaob, the country's largest island, located northeast of Koror City and northwest of Melekeok City. It is the least-populous capital city of a sovereign nation in the world. Ngerulmud is derived from a Palauan phrase meaning "place of fermented angelfish", referring to the hill overlooking the ocean that dominates the site. The last syllable, mud, is the Palauan word for Centropyge tibicen, also known as the keyhole angelfish. In the past, under a local tradition, women gathered on the hill to offer fermented angelfish to the gods. The previous capital of Palau was located provisionally in Koror. The country's constitution, ratified in 1979, directed the Palau National Congress to establish a permanent capital in Babeldaob within ten years of the constitution's effective date. The new capital's planning began in 1986, when a contract for the construction of the capitol complex was assigned to a Hawaii-based architecture firm, Architects Hawaii Ltd. (AHL), which had previously designed the capitol complex of the Federated States of Micronesia, located at Palikir. Progress was slow, as Palau lacked engineers and architects, and most of the construction materials had to be imported. Further work was not begun until the early 2000s when Palau secured a

20 million loan from Taiwan as part of efforts to enhance relations between the two countries and secure Palau's diplomatic recognition of Taiwan. Containing separate buildings for the Olbiil era Kelulau (the country's legislature), and also the judicial and executive branches, connected via a central open plaza, the complex cost over US

45 million, and was officially opened on 7 October 2006, with over 5,000 people in attendance. Government officials moved their offices from Koror to Ngerulmud shortly after.

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Ngerulmud

Koror

Koror is the state comprising the main commercial centre of the Republic of Palau. It consists of several islands, the most prominent being Koror Island (also Oreor Island). It is Palau’s most populous state. In the oral tradition of Palau, Koror is one of the children of Milad, and thus occupies an important position in traditional belief. In addition, Koror is the home of the clan of the Ibedul, the high chief of Palau. Several traditional villages in Koror span the volcanic and rock island portions.

Palau

Palau (officially the Republic of Palau and historically Belau, Palaos or Pelew) is an island country in the Micronesia subregion of Oceania in the western Pacific. The republic consists of approximately 340 islands and connects the western chain of the Caroline Islands with parts of the Federated States of Micronesia. It has a total area of , making it one of the smallest countries in the world. The most populous island is Koror, home to the country's most populous city of the same name.