The capital of Palau is Ngerulmud. Located on the island of Babeldaob, Ngerulmud is one of the world's least populated capital cities. It was officially designated as the capital in 2006, replacing the previous capital, Koror. Ngerulmud is notable for its government buildings, including the Palau National Congress and the Presidential Office, and is set amidst lush landscapes. Despite its small size, Ngerulmud represents the political heart of Palau, where important decisions regarding governance and development take place. The city embodies the country's efforts to balance cultural preservation with modern governance.