Ngerulmud replaced Koror as Palau’s capital in 2006.
Ngerulmud is the seat of Palau’s national government in Melekeok State on Babeldaob, the country’s largest island. The government formally moved there in October 2006, replacing Koror City, which had served as Palau’s capital. The new capitol complex officially opened on 7 October 2006.
Planning for the complex began in 1986, but construction progressed slowly because Palau had limited local architectural and engineering resources and needed to import many materials. In the early 2000s, Palau secured a $20 million loan from Taiwan that helped fund the project. The completed complex contains separate facilities for the legislature, executive branch, and judiciary around a central plaza.
Koror remains Palau’s commercial and population center, so it is easy to confuse the country’s practical hub with its political capital. Ngerulmud is about 20 kilometres northeast of Koror City. Another common mix-up is Airai: it is on Babeldaob and contains Palau International Airport, but it was not the former national capital.